Frax Force
1.2K posts
@FraxForce
The social engine of @fraxfinance.
Source: theblock.co/post/407988/sb… ¤ Frax take: We see enormous potential in Japan and Frax will be at @WebX_Asia in Tokyo this week to meet with partners.
[RWA Day 13/31: CADD] ██████░░░░░░░░░░░░░░░ $CADD from @TetraDigitalGrp is live on Hydrex as part of Forex with @fraxfinance. Stake & earn with the Canadian Dollar stablecoin now.
SCALING: frxUSD deposits on Aave v4 are up ~50% over the past month. @fraxfinance 🤝 @aave
In the previous post, we explored how $veCRV transformed governance by rewarding long-term commitment instead of short-term ownership. But once voting power existed, a much bigger question emerged. What exactly should that voting power control? At first, the obvious answer would have been protocol governance. Voting on upgrades. Voting on parameters. Voting on administrative decisions. @CurveFinance certainly supports those forms of governance, but they were never the most important use of veCRV. Instead, Curve used governance to solve an entirely different problem, How should new liquidity incentives be distributed? Every protocol that distributes token emissions faces the same challenge. Should every liquidity pool receive the same rewards? Probably not. Should rewards be decided by a small group of developers? That would create centralization. Should emissions simply follow TVL? That would reinforce existing capital instead of responding to changing market demand. Curve chose a different approach. Rather than hardcoding where $CRV emissions should go, it delegated that decision to veCRV holders. This is where Gauges enter the picture. A Gauge is a mechanism that tracks liquidity for a specific pool and determines how many CRV emissions that pool is eligible to receive. Not every pool receives the same allocation. Instead, each Gauge competes for a share of the protocol's weekly CRV emissions. The distribution depends on Gauge Weight. Gauge Weight is determined through voting by veCRV holders. If more voting power is directed toward a particular Gauge, a larger share of future CRV emissions flows to that pool. If fewer votes are allocated, emissions gradually decrease. This changes the role of governance entirely. veCRV holders are no longer deciding abstract protocol parameters. They are deciding where the protocol directs its economic incentives. That distinction is incredibly important. This creates what is often referred to as a flywheel effect. When a pool receives higher CRV emissions, providing liquidity to that pool becomes more attractive. As more liquidity enters, trading conditions improve. Deeper liquidity reduces slippage. Lower slippage attracts more trading volume. Higher trading volume generates more fees. Those fees make the pool even more attractive for liquidity providers. What begins as a governance vote eventually influences the entire economic activity of the protocol. Curve therefore doesn't allocate liquidity directly. It allocates incentives. The market then responds to those incentives. This creates a feedback mechanism between governance, emissions, liquidity and trading activity. Instead of relying on a centralized team to decide which markets deserve support, Curve allows that decision to evolve continuously through the collective preferences of veCRV holders. In many ways, Gauges became the bridge between governance and liquidity. Without them, veCRV would simply be another governance token with voting rights. With them, governance gained direct influence over the distribution of capital across the protocol. And that single mechanism proved to be far more valuable than many people initially realized. Because once controlling Gauge votes meant controlling liquidity, voting power itself became a scarce economic resource. Protocols no longer wanted veCRV merely to participate in governance. They wanted it to direct liquidity toward their own markets. That realization marked the beginning of one of the most fascinating competitive dynamics in DeFi history. The Curve Wars.
💲ONCHAIN CA$H — 6pm UTC💲 Our sections are loaded for tonight's live show: ¤ Onchain Pulse: @CoinGecko chart shows where stablecoin gravity really sits across top EVM chains, with only a small slice of tokenized equities actually active in DeFi. ¤ Market Briefing: @Ripple secures a full MiCA CASP license, @Circle gets an OCC trust bank charter for USDC. Europe pushes for cash + digital euro to be accepted everywhere. @Aave's stable vaults went live, while @StaniKulechov says: DeFi must become “the backbone financial infrastructure”. ¤ Rumors / FUD: Did @Robinhood’s “memes too” comment risks their RWA narrative? While the failed absolute majority against Chat Control raises new questions about how much privacy users can realistically expect in Europe. We will sort through what is real structural risk. ¤ @Fraxfinance Ecosystem Update Frax’s quarterly report is expected to be released soon, While @samkazemian appeared twice on podcasts this week. $frxUSD is already in real‑world use via @Ether_fi, with users earning cashbacks on everyday spend. ¤ DeFi Yield Radar @llamalend lets you use $sfrxUSD as collateral, keep earning yield on it, and borrow $crvUSD at a slightly negative rate so your debt slowly pays itself. ¤ @CharmanderX81 Corner – Live Market TA ¤ MORE ☎️ Big week onchain with regulation, infra shifts, FUD and new yield primitives. See you in 30mins, here on X.
💲ONCHAIN CA$H 💲 x.com/i/broadcasts/1…
On the newest episode of the Fully Vested Pod by DefiLlama, @samkazemian, Founder & CEO of @fraxfinance, joined us to talk building in DeFi, the token vs equity debate, and what Frax is building next. 0:00 Intro 2:57 Frax's Longevity & the Business of Stablecoins 7:26 Prediction Markets 10:24 Token Equity Splits 26:25 Clarity Act and if it Matters 27:12 Why Crypto is Underperforming 32:03 Frax's Upcoming Partnerships & Initiatives
Introducing Stable Vaults, an all-in-one solution for embedding fixed-rate stablecoin yield into any financial product.
The Summer interview with @samkazemian is live. @Bjirke sat down with Sam to talk leadership, hard lessons from a decade in crypto, and where he sees the market heading into 2027. An interesting look into the thinking behind @Frax / @fraxfinance. 1:09 – How He Became a Leader 8:12 – The Korean Air Crash Lesson 22:41 – "Cockroaching" Through the Bear Market 28:50 – Crypto's Next Step Function 45:40 – Diamond Hands will win
The Christmas interview with @samkazemian is live. Listen to Sam talk about lessons from when he was a child, how he found his values and what is important in his life. A interesting view into the thoughts that helped form @Frax / @fraxfinance. Thank you again for a great conversation! Already looking forward to the next one.
