I think that we should add Frax to the set of provide assets which can be staked and earn a yield in PRV.
Frax is similar to DAI, in that it is unstoppable and regulated by the Frax protocol.
From their website.
“Frax is the first fractional-algorithmic stablecoin protocol. Frax is open-source, permissionless, and entirely on-chain – currently implemented on Ethereum. Frax is the first and only stablecoin with parts of its supply backed by collateral and parts of the supply algorithmic. The end goal of the Frax protocol is to provide a highly scalable, decentralized, algorithmic money.”
One of the biggest issues with DAI is its reliance on USDC as the primary collateral asset. This is a feature, not a bug of DAI ever since they switched from SAI to DAI. Recent proposals to regulate stablecoins would potentially capture DAI and put the market at risk.
Adding FRAX would help mitigate that risk, as the end goal is to reduce its collateral ratio to under 50%, meaning its value would not be completely dependent on USDC.
Incognito stands to gain a lot by adding FRAX. It will increase the systemic security of the Pdex and it will help drive volume to new pairs.
FRAX should be given the same provide rewards as the other stables to encourage a long term transfer from DAI to FRAX over the next years.
Website: frax.finance Telegram: https://t.me/fraxfinance Twitter: https://twitter.com/fraxfinance