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Fraxlend Overview

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.
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.

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 one (or two) ChainLink Oracles to determine the market rate for both the Asset Token and the Collateral Token. Other oracle implementations (like TWAPs) are supported in limited cases.
  • 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 Deployer contract
  • The pair Registry keeps track of all Fraxlend Pairs deployed