FRAX FINANCE BIWEEKLY PROJECT UPDATE - #40
Week ending 07/13/2026
What We Did
Events / Media
[Alto] Frax’s VP of Communications joined an Alto X Space to discuss frxUSD’s growing role as a default stablecoin for DeFi liquidity, including its use within Alto’s DUSD ecosystem.
[Frax Force] Bjirke sat down with Sam to talk leadership, hard lessons from a decade in crypto, and where he sees the market heading into 2027. Link.
[Fully Vested Pod] Hosted by by DefiLlama, Founder & CEO Sam talked building in DeFi, the token vs equity debate, and what Frax is building next. Link
[Stabled Up] The Rollup’s Stabled Up show, powered by Frax, featured Curve Finance founder Michael Egorov.
Governance
Note: Does not include votes that did not meet quorum. Also, only ongoing and completed votes.
[FIP-448] Wind Down the Frax Price Index (FPI) System. Link: This proposal winds down and retires the Frax Price Index system as an active product within the Frax ecosystem. FPI was originally designed as an inflation-indexed unit of account based on CPI data, but declining adoption, changing macroeconomic conditions, and the rise of higher-yield alternatives such as frxUSD and sfrxUSD reduced its utility and strategic relevance. Retiring FPI simplifies the protocol’s product suite and allows resources to be redirected toward products with stronger user demand. The proposal passed unanimously with 26,587,774 votes in favor and zero against, exceeding the 8,252,476 quorum requirement.
[FIP-449] EchoMarket Creator & Distribution Program for Frax Finance. Link: This proposal allocates 42,000 wFRAX over six months to expand Frax’s creator and distribution network through EchoMarket. The allocation consists of 30,000 wFRAX for Frax Force and 12,000 wFRAX for the broader Frax Creator & Distributor Program. EchoMarket has generated more than 2.5 million validated impressions and built a network of over 250 active creators using AI-powered content verification and scoring. The funding is intended to increase awareness of frxUSD, sfrxUSD, Fraxtal, and FraxNet through educational and community-driven content. The proposal passed with 37,498,135 votes in favor and 19,794 against, well above quorum.
Partnerships / External Integrations
[3Jane] The USD3/frxUSD PegKeeper pool on Curve Finance offers up to 70% APR through combined CRV and JANE incentives.
[Aave] frxUSD borrowing rates on Aave V4 were just above 2% APY, supporting its continued growth as a core stablecoin on the platform.
[Beefy Finance] Beefy added support for Aave V4 deposits, beginning with frxUSD opportunities offering approximately 6% APY.
[Canton Network / Cantex / OneSwap] bridged frxUSD.B expanded across Canton Network, becoming available for trading on OneSwap and later on Cantex.
[Curve Finance] frxUSD PegKeeper pools generated more than $200 million in trading volume during June, with 30 partners now using frxUSD as a default liquidity pair, including recent additions 3Jane USD3 and Vetro VUSD.
[Hydrex] Hydrex collaborated with Frax on Forex with Frax, with frxUSD forwarding underlying yield to Hydrex liquidity providers across more than 10 stablecoin pairs.
[Lighter / Robinhood] Frax highlighted Lighter’s integration with Robinhood and the potential for broader stablecoin collateral support on the platform.
[Odos Protocol] A featured Odos swap route illustrated frxUSD’s growing role as a liquidity hub for stablecoin swaps.
[Open Standard / Open USD] Frax welcomed Open Standard’s announcement of Open USD, a new stablecoin supported by more than 140 companies across payments, banking, technology, and crypto. Frax highlighted the project’s shared reserve economics and collaborative governance as aligned with its ecosystem-first approach to stablecoin infrastructure.
[Somnia Network] USDso went live as Somnia’s native stablecoin, powered by frxUSD infrastructure with institutional-grade reserve backing and native minting capabilities.
[Sonic Labs] Frax highlighted Sonic Labs’ USSD stablecoin, which is powered by Frax infrastructure, alongside Fraxtal’s continued growth in onchain assets.
[Stake DAO / Morpho] Stake DAO lending markets on Morpho made approximately $760,000 in frxUSD liquidity available to borrowers using Curve LP positions as collateral. OnlyBoost LPs can also be used as collateral while continuing to earn boosted CRV rewards.
[Tangent] Borrow caps for the frxUSD/sDOLA market on Tangent were increased, expanding available borrowing capacity.
[Vetro] Vetro selected frxUSD as the default PegKeeper liquidity pair for VUSD. The frxUSD/VUSD pool went live with bootstrapping incentives through Stake DAO, followed by a broader VUSD integration announcement.
Tech
[FraxNet]
Advanced a unified state machine for FraxNet cross-chain transfers, adding support for direct transfers to deposit-contract addresses and more granular transaction-status tracking.
Progressed the EU KYC rollout and continued reviewing KYC applications.
[frxUSD]
Developed SimpleRedeem functionality for T+1 redemptions of frxUSD and sfrxUSD.
[Multichain / LayerZero]
Added rate-limiting functionality for Frax OFTs.
Expanded FUI swap routing with KyberSwap, LI.FI, Odos, and Fraxtal multihop support, while consolidating the Fraxtal multihop router into the frax-lz-route-api.
Built reusable chain-deprecation tooling and progressed Polygon zkEVM partial-wire cleanup across the Frax LayerZero mesh.
Prepared a Solana multisig transaction to bridge frxUSD and WFRAX to Ethereum and removed liquidity from the frxUSD/WFRAX PumpFun AMM pool.
Reviewed the Frax DVN circuit-breaker implementation.
[Other]
Designed a DeFi credit-card module.
Other
[Frax Force] Onchain Cash covered Ethereum’s industry-leading 26.2% blockchain user-retention rate. Link pending.
[Frax Force] Onchain Cash reviewed the latest market and onchain data from CoinMarketCap, DefiLlama, and Pharos, along with commentary from Nick Timiraos and Haseeb on the changing AI landscape. Link pending.
About Frax
At Frax, we’re building the world’s most scalable stablecoin infrastructure for the next generation of finance.
You can see a more detailed overview here.
Legal Disclaimers
This announcement is not intended to provide financial, legal, or investment or other advice and we recommend that you do not rely on, and do not make any financial or other decision based on this announcement. It has been written and published by members of the Frax team and provides no guarantee, commitment, or undertaking to utilize any Frax-related funds, assets, properties, or personnel. Frax does not owe, and does not intend to assume, any duties or obligations to Frax users or participants. The Frax community (namely veFXS holders) may decide, through voting mechanisms, to direct the protocol in an entirely different direction than that of the team, and the latter would be obligated to follow said vote(s).
To the maximum extent permitted by applicable law, all software relating to Frax is being provided on an as-is, where-is basis, with no representations or warranties being made to Frax participants and with no liability to the Frax protocol or any other person involved in the development of Frax. The statements set forth in this announcement also are not intended to be warranties, representations, guarantees, or assumptions of duty or liability of any kind. The protocol will not be liable for any damages arising from its use or misuse.
The forward-looking statements in this announcement are subject to numerous assumptions, uncertainties, and risks which are subject to change over time. Such assumptions, risks and uncertainties could cause actual results or developments to differ materially from the results and developments anticipated by us. Even if anticipated results and developments are realized, such results and developments may nevertheless fail to achieve any or all of the expected benefits anticipated by this announcement.