Recently, the decentralized finance (DeFi) lending platform Frax Finance received approval from its community for a governance proposal.
The proposal, which was approved on April 5, paves the way for an investment of $250 million in USDe from Ethena Labs into a newly established liquidity pool. This initiative is part of Frax’s Singularity Roadmap and introduces an automated market operation (AMO). It will also facilitate the issuance of new FRAX tokens, which will be supported by debt that is more than fully collateralized.
As per a post on X by Ethena Labs on April 8, FRAX has begun including USDe POL. Thus, it will create one of the largest dollar liquidity pools in the DeFi space and also enable FRAX to diversify the source of its yield.
Ethena’s Bitcoin integration
Last week, Ethena Labs bitcoin–support-integrated-into-ethena-usde/” target=”_blank” rel=”noopener”>captured the spotlight by announcing the incorporation of Bitcoin support into its USDe synthetic dollar, aiming to expand its supply beyond the existing $2 billion.
On March 8, Ethena Labs emerged as the top-earning decentralized application (DApp) in the crypto space, offering approximately 67% annual percentage yield (APY) on USDe, which raised concerns in the community about the protocol’s financial sustainability. Ethena Labs achieved a number of remarkable milestones and also became an item of great interest for large investment funds, with Delphi Ventures regarding it as the best investment opportunity of this cycle.
The recent release of Ethena Labs of its new governance token called $ENA was greeted with a lot of hype from the crypto community, including remarks from Arthur Hayes, the ex-CEO of BitMEX. Ethena wants to use $ENA to improve its decentralization, accessibility, and security. In its Season 2 campaign, the company handed out 5% of the $ENA’s total supply to all USDe and sUSDe holders——an initiative expected to last five months.
