Decentralized stablecoin project Frax Frax
+0.27%
“We propose to turn the protocol fee switch back on, sending 50% of profits to veFXS and the remaining 50% for purchases. 
FXS
+1.00%
Other Frax assets to be paired on the FXS Liquidity Engine (FLE),” Frax Finance wrote in its proposal. thursday. “FLE will allow Frax to continue building its balance sheet while dramatically increasing the liquidity of FXS and the combined Frax assets.”
The proposal also details how the new tokenomics system will fully collateralize the decentralized stablecoin FRAX, as well as propose an augmented yield structure. Regarding veFXS, an illiquid staking reward, “veFXS stakers will receive the total protocol fee if this proposal passes, which will be added to the veFXS Yield Distributor on the Ethereum mainnet and soon to be added to Fraxtal’s veFXS Yield Distributor contract.”
Frax Finance initially proposed a plan to flip the protocol fee switch on February 26, reversing its previous decision to suspend rewards, The Block previously reported. Protocol founder Sam Kazemian said at the time that Frax felt “now is the right time to flip a huge switch. It’s going to be hugely profitable.”
Frax Finance develops and manages the FRAX USD-pegged decentralized stablecoin, the protocol’s native token FXS, and the veFXS tokens that users receive when they stake FXS. According to The Block’s FXS price page, FXS was trading at $7.48 at 5:32 PM on March 21, after rising 1.13% in 24 hours.
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About the author
MK Manoylov has been a reporter for The Block since 2020, joining just before Bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for publications covering all cryptocurrency-related news, preferring NFTs, metaverse, web3 games, fundraising, crime, hacking, and cryptocurrency ecosystem stories. MK holds a graduate degree from New York University’s Science, Health, and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. X You can follow MK at @MManoylov and on LinkedIn.