Free TON, a decentralized proof-of-stake blockchain powered by its community, and Frax, a fractional-algorithmic stablecoin protocol, announced a partnership to make decentralized finance more functional and affordable for everyone. The Frax team will deploy its protocol to the Free TON ecosystem so that its stablecoin, Frax, and governance token, FXS, can be minted natively on Free TON.
This partnership will be implemented in two stages:
Farming: The addition of the FRAX/WTON, FXS/WTON and FRAX/USDC pairs to the native Free TON decentralized exchange TON Swap, which was developed by Broxus, a multilevel turnkey platform for crypto exchanges, e-commerce and trading platforms. TON rewards will be applied to users, in providing liquidity to those pools.
Frax’s deployment on Free TON: Porting the Frax protocol smart contracts to Free TON so that users can natively mint Frax on Free TON with their wrapped USD Coin (USDC).
The partnership will allow users and teams from both Free TON and Frax ecosystems to access highly scalable, stable and on-chain money with low transaction costs and high transactions per second.
“Frax Finance is an algorithmic stablecoin that creates a revolutionary product by approaching the price stability problem differently. The team has already introduced brand new features, such as staking and yield farming,” said Vladislav Ponomarev, CEO of Broxus.
“Free TON offers a blockchain-based infinite sharing paradigm using a traditional proof-of-stake or PoS mechanism which makes it unique in the DeFi ecosystem,” said Sam Kazemian, the founder of Frax.
About Free TON
Free TON is a fast, secure and scalable blockchain, which is capable of handling millions of transactions per second and is on a mission to drive the wide adoption of decentralized solutions by millions of users. Free TON’s unique features include an infinite sharding paradigm, instant hypercube routing, PoS mechanics to validate new blocks, the ability to configure network parameters by voting, and more.
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 highly scalable and decentralized algorithmic money in place of fixed-supply digital assets such as Bitcoin (BTC). Frax is the only stablecoin with parts of its supply backed by collateral and parts of the supply algorithm. The collateralized and algorithmic ratio depends on the market’s pricing of the Frax stablecoin. If Frax is trading at above $1, the protocol decreases the collateral ratio. Vice versa, if Frax is trading at under $1, the protocol increases the collateral ratio.
About TON Swap
TON Swap operates liquidity pools represented by separate smart contracts. Unlike Ethereum contracts, Free TON’s contracts are distributed and benefit from the infinite sharding mechanism. As a result, transaction gas fees are several orders lower than the average and do not depend on the network workload. Anyone who contributes to those pools with their liquidity is eligible to participate in the yield farming program by the Free TON DeFi Alliance.