FRAX Surges Following Plans to Launch FraxBonds; Prisma Finance Rapidly Attracts $30M in mkUSD Stablecoin, Hits New Cap

Daily Top Performer — Frax Finance (FRAX)

The SPX index is up 0.40%, driven by comments from Chicago Fed President Goolsbee suggesting the U.S. could avoid a recession. The broader cryptocurrency market is down, with Bitcoin and Ether dropping 0.85% and 0.25% respectively, in the past 24 hours. 

Today’s outperformer is FXS, which surged 5.1% in the past 24 hours following DeFi to launch FraxBonds, integrating real-world assets for higher yields in upcoming FRAX v3.

Frax Finance (FRAX), launched in December 2020, is a multi-chain DeFi platform offering stablecoins, liquidity, and lending services focused on its stablecoin, FRAX, which is 100% collateralized by USDC and is governed by Frax Share (FXS) tokens. Frax Finance is introducing FraxBonds (FXBs) to integrate real-world assets like T-Bills and real estate into the blockchain. Partnering with FinresPBC, Frax aims to offer FDIC-insured accounts and higher yields through minting and redeeming stablecoins. FXBs will be sold at a discount and mature into 1 FRAX, with liquidity supported by Curve Finance pools. The launch is planned for shortly after an early September audit.

Check Out the Latest Prices, Charts, and Data of FXSUSDT!

Talk of the Town:

Prisma Finance, a new decentralized finance (DeFi) lending protocol, has quickly attracted $30M in stablecoin backed by liquid staking tokens (LSTs) called mkUSD. Launched on September 1, Prisma had a "guarded launch" to gradually increase the borrowing limit of mkUSD, hitting its latest cap of $30M in less than two hours on September 15. The primary draw for users is a "stability pool" that has amassed over $21M in mkUSD, which is used to settle liquidated debts and receive collateral. The protocol was inspired by Liquity and its stablecoin LUSD. Prisma also incorporates "veTokenomics," allowing holders of its yet-to-be-released vePRISMA tokens to direct additional PRISMA rewards to various functions within the ecosystem. Despite its early success, Prisma enters a competitive space already populated by established protocols like Aave and Maker, which offer similar services.