Native on-chain asset issuance blockchain, Noble, has partnered with Frax Finance to bring decentralized stablecoins FRAX and sFRAX into the Cosmos and IBC ecosystems.
Other Frax Finance tokens, including the Frax Price Index (FPI) and FraxEther (frxETH), are expected to be available at a later date.
FRAX itself is a USD pegged stablecoin, meaning that it is worth 1:1 to the US dollar. Each stablecoin has an 100% collateralization ratio and the stablecoin uses Algorithmic Market Operations (AMO) contracts and non-custodial subprotocols to maintain the peg to the dollar.
Read more: Frax v3 offers ‘all-weather stablecoin,’ founder Kazemian says
sFRAX is a staked version of the FRAX token. In order to receive the token, a user must lock their FRAX with a staking provider. This will then allow them to earn yield exposure on their stablecoins that are otherwise sitting idly.
According to DeFiLlama, FRAX is the eighth largest stablecoin based on market capitalization. It currently has a market cap of $388.2 million, lower than popular stablecoins USDC and DAI, which have market caps of $32.116 billion and $4.881 billion, respectively.
Sam Kazemian, the founder of Frax Finance, noted that bringing native FRAX into the Cosmos ecosystem had been a priority for the team for a period of time.
“We look forward to FRAX and sFRAX being available and are excited by the potential of innovative use cases and incentives developed by us and our partners as well as by the broader community of Cosmos appchains and users,” Kazemian said in a press release reviewed by Blockworks.
This process is made possible by Noble, the digital asset issuance chain and the native asset issuer of USDC in the Cosmos ecosystem. Through Noble, all major Comos chains that are integrated with IBC — including Osmosis, dYdX, Celestia, Sei, Injective and others — will be able to access FRAX and sFRAX natively.
Read more: Noble comes out of stealth to solve Cosmos liquidity
“We are excited to partner with Frax Finance in bringing a market leading asset to the wider Cosmos ecosystem,” Noble founder Jelena Djuric said. “FRAX’s integration supports Noble’s vision of bringing liquidity, interoperability and seamless UX and allows Noble to ultimately provide more value to asset issuers and end users.”
Sourced from cryptonews.net.
