FRAX FINANCE BIWEEKLY PROJECT UPDATE - #38
Week ending 05/31/2026
What We Did
Events / Media
[Podcast] Sam Kazemian, co-founder Frax.com was hosted by Mario Nawfal on his Twitter Space to discuss on the CLARITY ACT, where discussed on what the next era of crypto regulation and internet finance could look like. Link.
Governance
Note: Does not include votes that did not meet quorum. Also, only ongoing and completed votes.
[FIP-445] Discontinue OFT Token Support on Deprecated and Inactive Chains. Link: This proposal discontinues Native OFT bridge support for five deprecated or inactive chains: Aptos, Berachain, Mode, Movement, and Scroll, each of which had minimal liquidity and negligible user activity. The affected Frax assets include frxUSD, sfrxUSD, frxETH, sfrxETH, FPI, and WFRAX. By sunsetting these deployments, Frax reduces operational overhead, lowers cross-chain risk exposure, and concentrates security and maintenance resources on higher-activity networks such as Ethereum, Fraxtal, Base, Polygon, Sonic, and Sei. The proposal passed unanimously with 27,180,029 votes in favor and zero against, comfortably exceeding the 8,252,476 quorum threshold.
Partnerships / External Integrations
[Aave] frxUSD incentives went live on Aave V4, with frxUSD integrated as a day-one base asset and supply caps quickly hitting 100% utilization. frxUSD later became the #1 deposited asset on Aave V4, hitting $20M in deposits and helping push total V4 deposits past $110M, while LlamaRisk proposed doubling frxUSD caps from $10M to $20M to give it the largest stablecoin cap in Aave V4. frxUSD also became the third-most borrowed stablecoin on Aave V4 after USDC and USDT, with borrowing available from as low as 1.5% APY. Link
[AlphaPing / Morpho / Inverse Finance] The frxUSD AlphaPing vault on Morpho was offering 20%+ APY, with $1M deposited and refreshed incentives for exposure to sDOLA from Inverse Finance. Link
[Alto] Alto selected frxUSD as a default stablecoin for liquidity, whitelisting it in Alto’s permissioned PSM to mint DUSD and launching a new DUSD/frxUSD Curve pool with underlying frxUSD yield flowing to LPs. Link
[Canton Network / Send] Send launched a Base ↔ Canton bridge with frxUSD included as a Day 1 asset, creating frxUSD.B as the Send-bridged version of frxUSD on Canton Network’s institutional settlement infrastructure.
[Curve Finance] frxUSD PegKeeper pools on Curve Finance hit $1 billion in trading volume, with frxUSD offering yield-forwarding for more sustainable DeFi liquidity. Link
[EtherFi] Week 8 frxUSD rewards on EtherFi were distributed, with Hold & Transact rewards remaining live for users maintaining a $500 balance and completing 10 transactions in their first 30 days.
[Featherlend] sfrxUSD was available as collateral on Featherlend on Sei, enabling users to borrow PYUSD at 2.06% against sfrxUSD earning 4%+ yield for looping strategies. Link
[LayerZero] Frax assets worth over $500M span 20+ blockchains with LayerZero, having securely moved hundreds of millions across tens of thousands of messages.
[Overlay Protocol] The $FRAX token became available for perpetual trading on Overlay Protocol, with a FRAX/USD futures market launched with leverage.
[Parallel] A new frxUSD/USDp pool launched on Curve Finance on HyperEVM in partnership with Parallel Money, offering 15% APR with incentives live via Merkl.
[Tangent] Pre-deposits for Tangent went live with frxUSD selected as one of two default stablecoins to secure a $TAN allocation. Tangent then went live as a DeFi protocol built on top of frxUSD, with up to 2.5M USG available to borrow across 12 markets, and later reached capacity less than five days post-launch, with frxUSD markets filling first. The frxUSD PegKeeper pool with Tangent USG also surpassed $2M TVL on Curve Finance, offering up to 30% APR plus future $TAN allocation for LPs.
Tech
[FraxNet]
Continued FraxNet admin-dashboard and KYC-flow work, including a KYC revamp and admin-page polish.
[frxUSD]
Continued frxUSD Aave forwarder work, including rewards-forwarder support.
Scoped oracle configuration work for savUSD/frxUSD.
[Multichain / LayerZero]
Continued DVN Hook block-hash service work and LI.FI integration work.
Added HopV2 support on FUI and continued HopV2 architecture cleanup.
Refactored the frax-lz-route-api for efficiency using caching.
Pinned optional DVN counts in frax-lz-mesh and continued LayerZero mesh / OFT / TL upgrade review work.
[Other]
Continued EtherFi rewards work, including weekly distribution refactoring, a historical API endpoint to net.frax, and related indexing debugging.
Continued srRoyUSDC rollout work, including associated UI, Facts deployment, and subgraph PRs.
Continued UniswapX integration work.
Continued miscellaneous custodian work and multisig transaction reviews.
Other
[Frax Force] Frax Force Podcast episode 2. Link.
[Frax Force] Onchain Cash episode 5. Link.
[Frax Force] Onchain Cash episode 6. Link.
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.