Native Moonbeam Implementation Allows Frax Access to the Growing Polkadot Ecosystem
Boston, MA – April 23, 2021 – Moonbeam, the Ethereum-compatible smart contract platform on Polkadot, announced an integration with Frax, a fractional-algorithmic stablecoin protocol. The Frax team will be deploying their protocol to Moonbeam so that their stablecoin can be minted natively on Polkadot. This integration will allow users and teams in the Polkadot and Moonbeam ecosystems to access highly scalable, stable, and on-chain money. The addition of Frax Protocol on Moonbeam continues to solidify Moonbeam’s rapidly growing DeFi ecosystem.
Frax is an innovative stablecoin with parts of its supply backed by collateral and other parts backed algorithmically. The Frax protocol is a two-token system encompassing a stablecoin, Frax (FRAX), and a governance token, Frax Shares (FXS). Stablecoins, such as Frax, are a critical necessity in a broad range of DeFi use cases. The integration of Frax into Moonbeam will allow users and developers in the Polkadot ecosystem to have a safe and stable place to store value while gaining capital efficiency from the fractional nature of the Frax protocol design.
“It’s extremely difficult to design algorithmic stablecoins such that they keep a stable value. The Frax team has taken an innovative and pragmatic approach which has resulted in an excellent track record maintaining their peg,” says Derek Yoo, founder of the Moonbeam project. “Frax fills a critical role for DeFi use cases. We are excited to work with the Frax team on their first expansion outside of Ethereum and to continue to grow both the Frax and Moonbeam ecosystems.”
Many DeFi projects have already expanded to Polkadot via Moonbeam. Moonbeam’s powerful Ethereum compatibility, rich set of collateral assets, AMM-based dex options, and integrated oracle data feeds means that there are minimal changes needed to re-deploy Frax’s Ethereum-based code to Polkadot. The Frax team saw Moonbeam as an ally to pursue a multi-chain deployment strategy and access the active and fast-growing community of users and developers in the Polkadot ecosystem.
“Polkadot is one of the most exciting ecosystems in all of crypto, and thus we’re really proud to build on Moonbeam,” said Sam Kazemian, founder of Frax Finance. “Frax is the first partial collateral stablecoin in the world with a perfect peg. It has never traded above or below $1. Frax’s innovative mechanism has become an influential design that has inspired various other stablecoins. We’re excited to bring our innovative protocol natively to Moonbeam.”
The Moonbeam and Moonriver networks are currently in active development. Get started building on Moonbeam’s TestNet, Moonbase Alpha, by visiting the official project documentation site or join us on our Discord server.
About the Moonbeam Network
Moonbeam is an Ethereum-compatible smart contract platform on the Polkadot network that makes it easy to build natively interoperable applications. This Ethereum compatibility allows developers to deploy existing Solidity smart contracts and DApp frontends to Moonbeam with minimal changes. As a parachain on the Polkadot network, Moonbeam will benefit from the shared security of the Polkadot relay chain and integrations with other chains that are connected to Polkadot. Currently, in active development by PureStake, Moonbeam is expected to reach MainNet by mid-2021. Learn more: https://moonbeam.network/.
PureStake’s team has extensive experience building technology companies and complex software platforms. Led by Derek Yoo, former Fuze Founder, and CTO, PureStake provides protocol implementation services and creates developer tools for next-generation blockchain networks. Learn more: https://www.purestake.com/.
About Frax Finance
Frax is the first fractional-algorithmic stablecoin protocol. Frax is open-source, permissionless, and entirely on-chain. The vision for the Frax protocol is to provide a highly scalable, decentralized, algorithmic money in place of fixed-supply digital assets like BTC. Frax is the only stablecoin with parts of its supply backed by collateral and parts of the supply algorithmic. The ratio of collateralized and algorithmic depends on the market’s pricing of the FRAX stablecoin. If FRAX is trading at above $1, the protocol decreases the collateral ratio. If FRAX is trading at under $1, the protocol increases the collateral ratio. Learn more: https://frax.finance/.