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Whitepaper (Core) - Frax v1
FRAX V2 - Algorithmic Market Operations (AMO)
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Liquidity Programs & Staking
Distributing FXS tokens to farmers and incentivizing DeFi programs with novel rules
FXS rewards will be claimable for users who deposit Uniswap LP tokens to incentivized pairs, which can be attained by adding liquidity to token pairs on Uniswap. Each incentivized pair will have its own emission rate, and the sum of all FXS rewards across the incentivized pairs will emit at a base rate of
18,000,000 FXS for the first year, and formerly had a boost of up to 2x the more FRAX became algorithmic. For more details about the specific pairs and the overall LP program, check the Token Distribution section of the docs.The rate of emission in every pool is multiplied by a CR Boost factor that is inversely proportional to the collateral ratio. This means that as FRAX becomes more algorithmic, the rate of emission of FXS for all pools increases. The CR Boost constant is set to a
2x maximum multiplier, meaning that if FRAX is entirely algorithmic with a CR of 0%, then the rate of emission of FXS increases by 2x. For example, the first year of emission of 18,000,000 FXS per year would increase to a rate of 36,000,000 FXS per year if the CR reaches 0%. If FRAX is 50% collateralized, the boost will be 1.5x, putting the emission rate at 27,000,000 FXS per year. This boost was deprecated in April 2021 per governance action.
Time Locked Staking
Any LP can lock their LP tokens up to
1095 days (3 years). LP stakes are multiplied by two boost factors: time locked & collateral ratio. The collateral ratio boost applies to the base emission rate of FXS, so an increase in the collateral ratio boost means more FXS distributed across the whole system. The time locked boost applies to an individual's stake as a proportion of all of the stakes in the pool, making it a zero-sum outcome when someone gets a boost from time locked stakes. In other words, a time locked boost will increase the amount of FXS a single user gets by increasing their proportion of the pool which decreases the proportion of rewards for everyone else in the pool. This is done to help balance the risk/reward of locking liquidity into the system for a fixed amount of time. Time locked staking is intended to further reward LPs who have a long term belief in the Frax Protocol and want to commit to providing liquidity for an extended period of time. If any pool emission rate is changed due to a governance action, the time locked stakes of the pool are automatically unlocked so that emission rates don't change on LPs who have committed to locking funds. veFXS Boost
veFXS holders will get an additive boost to their weight when farming. See the veFXS specs for more details.
veFXS
Frax ¤ Finance
Last modified 4mo ago
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