Frax Finance ¤
English 🇰🇾
English 🇰🇾
  • Frax Ecosystem Overview
  • FXS & veFXS
    • Frax Shares (FXS)
    • veFXS
    • Gauges
    • FXS Distribution
    • FXS Smart Contract & Addresses
  • GOVERNANCE
    • Frax Governance Overview
    • How It Works
    • Advanced Concepts
    • Fraxtal Snapshot Voting
  • FRAX V1 - ORIGINAL
    • Original Design
    • Staking Contracts
    • FRAX ABI & Token Addresses
    • Frax V1 Pool ABI & Addresses
    • Core Frax Multisigs
  • FRAX V2 - Algorithmic Market Operations (AMO)
    • AMO Overview
    • AMO Minter
    • Collateral Investor
    • Curve
    • Uniswap v3
    • FRAX Lending
    • Decentralization Ratio (DR)
  • FRAX V3 - 100% CR AND MORE
    • Overview
    • Fraxtal
    • AMOs
    • RWAs
    • sFRAX
    • FXBs
    • sFRAX Token Addresses
    • sFRAX & FXB Multisigs
  • Bridging
    • Fraxferry
    • LayerZero x Stargate
    • Fraxtal Bridge
  • Frax Price Index
    • Overview (CPI Peg & Mechanics)
    • Frax Price Index Share (FPIS)
    • FPIS Distribution
    • CPI Tracker Oracle
    • FPI Controller Pool
    • veFPIS
    • FPIS Conversion / FPIS Locker
    • FPI and FPIS Token Addresses
    • FPI Multisigs
  • Fraxswap
    • Overview
    • Technical Specifications
    • Fraxswap Contract Addresses
  • Fraxlend
    • Fraxlend Overview
    • Key Concepts
    • Lending
    • Borrowing
    • Advanced Concepts
      • Position Health & Liquidations
      • Interest Rates
      • Vault Account
    • ABI & Code
    • Fraxlend Multisigs
  • Frax Ether
    • Overview
    • frxETH and sfrxETH
    • Technical Specifications
    • Redemption
    • frxETH V2
    • frxETH V2 Technical Details
    • frxETH Code & V2 Addresses
    • frxETH and sfrxETH Token Addresses
    • frxETH Multisigs
  • BAMM
    • Overview
  • Frax Oracle
    • Frax Oracle Overview
    • How It Works
    • Advanced Concepts
    • Fraxtal Merkle Proof Oracles
  • Guides & FAQ
    • FAQ
    • Staking
    • Uniswap Migration / Uniswap V3
    • Fraxswap / FPI
  • Miscellany
    • All Contract Addresses
    • Bug Bounty
    • Miscellaneous & Bot Addresses
    • API
  • Other
    • Audits
    • Media Kit / Logos
Powered by GitBook
On this page
  • Summary & Motivation
  • Ecosystem Participants

Was this helpful?

Export as PDF
  1. Fraxlend

Fraxlend Overview

An isolated pair lending protocol

PreviousFraxswap Contract AddressesNextKey Concepts

Last updated 7 months ago

Was this helpful?

Summary & Motivation

Fraxlend is a lending platform that provides lending markets between a pair of ERC-20 assets. Each pair is an isolated market which allows anyone to 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.

The main purpose for the creation of Fraxlend was for usage by the . The AMO contract supplies protocol-owned FRAX (and other Frax ecosystem tokens like frxETH and sfrxETH) for other users to borrow, in exchange for those borrowers depositing various collateral tokens and paying interest. This both generates income for the protocol and diversifies the collateral backing FRAX.

The max for each pair can voted on by the community, but generally is around 75% for pairs with volatile tokens and 90% for stablecoin/stablecoin pairs (the latter is generally less risky). The protocol also maintains a liquidation bot, but liquidations can be performed by any user against any unhealthly/underwater position.

Fraxlend UI:

Public Repo:

Ecosystem Participants

The primary participants in Fraxlend are Lenders and Borrowers, these participants interact with individual Pairs.

  • Lenders provide Asset Tokens to the pair 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 an Oracle to determine the market rate for both the Asset Token and the Collateral Token. Oracles combine price feeds from multiple places to achieve a robust and manipulation resistant price feed.

  • Each pair is deployed with a 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 Deployer contract

  • The pair Registry keeps track of all Fraxlend Pairs deployed

Fraxlend AMO
loan-to-value (LTV)
Link
https://github.com/FraxFinance/fraxlend
Fraxlend