Fraxlend Overview
Fraxlend is a lending platform that allows anyone to create a market between a pair of ERC-20 tokens. Any token part of a Chainlink data feed can be lent to borrowers or used as collateral. Each pair is an isolated, permission-less market which allows anyone to create and participate in lending and borrowing activities.
Lenders are able to deposit ERC-20 assets into the pair and receive yield-bearing fTokens. As interest is earned, fTokens can be redeemed for ever-increasing amounts of the underlying asset.
Fraxlend also supports the ability to create custom Term Sheets for over-the-counter debt structuring. Fraxlend Pairs can be created with features like: maturity dates, restricted borrowers & lenders, under-collateralized loans, and limited liquidations.

The primary participants in Fraxlend are Lenders and Borrowers.
  • Lenders provide Asset Tokens to the pool in exchange for fTokens
  • Borrowers provide Collateral Tokens to the pair and in exchange receive Asset Tokens. Borrowing incurs an interest rate which is capitalized and paid to lenders upon redemption of fTokens.
Beyond Pairs, the rest of the ecosystem includes: Oracles, Rate Calculators, and the Fraxlend Pair Deployer
  • Each pair relies on one (or two) ChainLink Oracles to determine the market rate for both the Asset Token and the Collateral Token.
  • Each pair can be deployed with a different Rate Calculator. These contracts calculate the interest rate based on the amount of available capital to borrow. Typically less borrowing will lead to lower rates, with more borrowing leading to higher rates.
  • Each pair is deployed by a single Deployer contract
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