Frax Finance has unveiled the deployment of stablecoin on NEAR Protocol via Ref Finance and Burrow through FraxFerry and the Rainbow Bridge.
This represents a significant milestone for Frax as its primary venture into a non-Ethereum Virtual Machine (EVM) ecosystem. Frax Finance stands as the second-largest issuer of decentralized dollar-pegged stablecoins and a pioneering force in DeFi infrastructure.
Frax and NEAR Protocol Collaborate for DeFi Innovation
The NEAR ecosystem and Frax contributors will now engage in collaborative efforts through ongoing in-depth research and protocol integrations. One of the prime opportunities between the two teams will involve introducing short-term treasury yields on NEAR using Frax coin, a yield-bearing asset that mirrors the Federal Reserve’s Interest on Reserve Balance (IORB).
In the approaching months, Frax will natively issue their suite of assets, including FRAX, sFRAX, frxETH, and sfrxETH on NEAR and Fraxtal, while also exploring opportunities surrounding NEAR LSTs. Other protocols on NEAR will likewise have the chance to explore these exciting frontiers alongside Frax. Although NEAR supports a variety of stablecoins, the decentralized Frax platform distinguishes itself by offering additional features such as yield and LSTs, which can be utilized by NEAR’s DeFi protocols for innovative ventures.
Ref and Burrow Lead NEAR DeFi Expansion
This deployment is spearheaded by Ref and Burrow and is slated to expand to other protocols in the near future. Ref Finance is a decentralized finance (DeFi) platform constructed on NEAR Protocol, tailored to facilitate the swapping, lending, and borrowing of digital assets. It serves as a versatile DeFi platform integrating various financial mechanisms, providing users with a comprehensive suite of DeFi tools. On the other hand, Burrow operates as a decentralized finance (DeFi) platform on the NEAR blockchain, offering non-custodial, pool-based lending and borrowing services.
More about the Incentive Campaign
To elevate activity and stimulate the growth of Frax on NEAR, Ref will introduce an incentive program offering rewards for Liquidity Providers (LPs) in the USDC/FRAX and NEAR/FRAX pools, as well as the Curve style stableswap pools. The proliferation of native stablecoins is pivotal to the expansion of DeFi, as it streamlines access to liquidity between protocols for users across various exchanges. This facilitates smoother interactions with different projects across the Web3 ecosystem, effectively eliminating bottlenecks and promoting a seamless trading experience.
Chain Abstraction
Moreover, this aligns with the NEAR ecosystem vision of Chain Abstraction, enhancing usability and consolidating liquidity and UX across all of Web3. Moreover, native stablecoins will significantly bolster the visibility of the NEAR Ecosystem’s Total Value Locked (TVL) within the market.
On Burrow, both borrowers and lenders will accrue incentives for utilizing USDC, USDT, and FRAX. Additionally, Burrow will provide rewards for NEAR and liquid staked NEAR, with further details set to be disclosed soon. Following the initial rollout on Ref and Burrow, this incentive campaign will be expanded to other qualifying DeFi protocols and primitives.
