In line with ongoing transitions, please make note of the following: henceforth, $FXS will be called $FRAX and the Frax Finance’s stablecoin ($FRAX) will be known as $frxUSD.

These ticker changes have not taken place yet, but are imminent as part of the oncoming Frax Finance mass token upgrades.

$FXS will soon become $FRAX(Fraxtal’s Sovereign token) and $FRAX(current stablecoin) will soon become $frxUSD.

Frax Finance(FraxFi), imo one of the most important protocols in all of DeFi, is about to make a huge power move.

Some people think FraxFi chases narratives, but I can confirm those people are wrong; FraxFi continues to be on the bleeding edge of innovation in the space, and has a history of bulletproof code and performant mechanics to show for it.

They have continuously been several steps ahead of crypto in general, and have released "the hottest narrative" advancements months ahead of "mainstream sentiment” on several occasions. FraxFi has never chased the Narrative, they help create it.

There's a reason they are heavily involved with: Curve, Convex, StakeDao, and now Yearn(via ReSupply!) and on several occasions in the past have rushed in to rescue our fallen brethren: DAOs and users alike. The reason they have been relied on in the trenches time and time again is because they have a deep history of performance and reliability to back them up; suffice it to say, they're as OG as it gets in this space.

Through the entire bear cycle, Frax Finance remained a profitable protocol, even with the Luna collapse tarnishing the name of all Algo-stables. (We all learned a harsh lesson that season; anyone can fall if they over-reach and under-prepare.)

The Beauty of Frax Protocol is that it produces results in any market climate, and that fact will really shine going forward. The integrations happening now and in the near future will end any and all debates about who the undisputed King of Stablecoins are, and I'll give you a hint: you're reading about them now.

The negative perspective created by the Luna Fall, alongside one of the very few pieces of actual legislation to come out of the US by way of the "Stablecoin Mandates," resulted in FraxDAO governance vote to take the Stablecoin Collateralization Ratio to 100% in exchange for nearly all Protocol Revenues going forward, meaning all (soon-to-be)frxUSD would be backed fully going forward; today, soon-to-be-frxUSD is currently over-collateralized and is in process of migrating some of their volatile collateral assets to safer alternatives.. that goes without saying that after a well-executed redistribution the “Frax Fee Switch” is about to get flipped on in so many ways that I don’t think anyone is actually prepared for it. Couple this fact with the veFRAX Sovereign upgrade, and that decision is about to pay off big, I believe.

FraxFi recently released its "Visi¤n 2030 Roadmap” aka FraxFi's game plan for the next 5 years, and I encourage you to go read it.

But while you're here, here's my take on the Future of FraxFi, starting with some reasons why they stand out:

soon-to-be-frxUSD has the tightest peg history of any stablecoin, never once having broken peg (in its current, pre-upgrade design, the AMOs keeping the price of the stablecoin stable-on-chain are designed to ensure frxUSD never hits +/- 1% in market value. Please note, the official upgrade from $FRAX stablecoin to frxUSD will produce many results, one of which we believe is a further reduction of price variation, aka a peg-tightening… according to my interpretation of founder Sam Kazemian’s recent statements in the FraxFi TG)

sfrxETH has the highest native yield of any Liquid Staking Derivative (LSD). Many LSDs have “artificially inflated” their ETH LSD yield by supplying their native tokens as incentivized rewards, but in terms of raw ETH yield, last I knew sfrxETH has always been at the top; this is a result of FraxFi’s two-token frxETH/sfrxETH design that none have outperformed. For this innovation alone, FraxFi is known throughout the industry. Afterall, frxETH is just a stablecoin pegges to ETH (see frxETH vs. sfrxETH).

FraxFi has deep-seated roots with both Convex and Curve. Frax is one of the single largest $CVX holders, Convex has a huge amount of $FXS(soon to be upgraded to $FRAX Sovereign Token and native gas on Fraxtal) as well as the most Curve, and Curve’s Mitch has often had massive lending positions on Frax’s lending platform FraxLend. Not to mention the Frax Basepool (frxUSD/USDC) is one of the most important Curve pairings in all of DeFi.

That goes without mentioning, FraxFi has always been extremely collaborative, choosing to empower the “positive sum” thesis wherein “APEs strong together,” which translates to proper English as “DeFi does not need to be a zero-sum race, and FraxFi believes it's not, choosing instead to collaborate and pair with protocols some would consider rivals, because when stablecoins LP together on Curve, for instance, both tokens are better off for it; creating deeper liquidity, and often a tighter peg, and the whole space is better off for it.”

BlackRock is getting deeper into DeFi, launching BUIDL liquidity pools on Curve and developing strategic partnerships. In the last 24hrs a FraxFi governance vote to add BUIDL Fund liquidity as a backing asset of the soon-to-be-released FraxFi stablecoin upgrade to frxUSD went live, and I am certain it will pass, further strengthening FraxFi’s relationship and strategic partnership with both BlackRock and Ethena, who are themselves heavily involved with and intertwined to the future of frxUSD.

FraxFi has been working on a Fed Master Account(FMA) with the Federal Reserve, and with the incoming pro-crypto administration moving into the Whitehouse the chances this will happen astronomically increase, imo (did I mention Frax was cofounded by one of Trump's 1st-term-proposed Economic Advisors (the J. Powell of a parallel universe)?

Alongside the FMA, FraxFi has hinted that yet-to-be-released custodial integrations could allow for 1:1 USD redemptions for frxUSD, opening the door for FraxFi to integrate into TradFi all the way down to your debit card. While not yet publicly released, I have zero doubts about this coming to fruition, and that alone has massively beneficial and bullish implications for frxUSD.

Imagine your stables yielding 10-30% APR or more and being able to use the yield to pay your bills or satisfy everyday expenses.. That's where this is going.

Then there's Fraxtal: FraxFi's rapidly growing Optimism-Superchain Validium L2. Today, all users of Fraxtal receive $FXTL points based on their "FLOX" distribution mechanics (which is a modified version of Googles page ranking system), and though $FXTL are not currently redeemable or transferable,

THREE HUGE ANNOUNCEMENTS were made: first, FRAX will finally have an official governance voted supply hardcap, second, $FXTL points will be converted to FRAX emissions, and tying it all together, Fraxtal will use FRAX as its Gas Token and Validator Stakes going forward.

Alongside its block by block rewards system (FLOX) distributing $FXTL, Fraxtal will soon have EIP1559 integrated on chain, further igniting token burn currently running through the FLE (aka the Frax Burn Engine).

Next, YearnFi and Convex just announced ReSupply (aka HIPPO) which will make use of underlying frxUSD to offer increased stablecoin yields onchain.

FraxFi has an enormous amount of $CVX, and both Convex and Curve are its oldest strategic partners (cant forget StakeDAO!).

Alongside the soon-to-happen token upgrade of $FXS--->$FRAX , FraxFi has announced a huge development with strategic partners @IQWiki: IQ Wiki is launching their "Agent Tokenization Platform" exclusively on Fraxtal , which will allow AI to be statefully verifiable for the first time.

Alongside allowing true absolute-democratization and sovereignty of these agents for the first time, AI creators will be able to benefit from training and improving their agents as they will take on a tokenized nature, like actually autonomous AI NFTs, which will likely have their own marketplace, verifiable performance leaderboards, etc

And last but certainly not least: Though Information on this is still heavily guarded and very little info has been released, we now know that through their partnerships with IQWiki and Near Protocol, FraxFi has been developing an EVM parallel "AI-VM" based on a concept called "Proof of Inference", which users will be able to elect to support alongside their FRAX Validator Nodes (PoS via veFRAX), increasing their potential reward and contributing to a global breakthrough both on the EVM and in AI.

Keep your eyes open for marketingfrom FraxFi to start ramping up and attract more in-flows as we move into 2025.

Money always follows the best and safest yields, and institutional money is known to be very conservative, always avoiding unnecessary risk. With BlackRock in the game and soon integrating into the soon-to-be-released revamped frxUSD, it's only a matter of time before other protocols and institution start to understand the FraxFi stack.

Lastly, Frax Finance's latest release highlights (part 3, Vision 2030) their forward thinking and quest to become the first Trillion Dollar Stablecoin: in collaboration with their Strategic (AI) Partners IQWiki and Near, Frax will be launching a completely redesigned UI that I believe will singlehandedly revolutionize DeFi.

FraxFi has announced the ongoing development soon to be Q1 release of an AI integrated front-end that will abstract away all technical knowledge and dissolve the need for any crypto or finance experience at all; the new Frax UI will allow users to simply speak to the AI what they want to accomplish and reap the results of Advanced Artifical Intelligence.

Tie this into their recently integrated onramp/offramp partners (Kado and Halliday, tied directly to the new UI), and this will allow day one users to seamlessly access the defi yield us natives love, as simply as users talk to Google’s Gemini today.

Being a frontrunner here should open huge doors for FraxFi as it erases the need of the steep learning curve of DeFi, allowing anyone to "beat their bank('s typically low yielding, archaic, sub-par) rate.

We all know the future is on-chain, and Frax is an absolute powerhouse whom I believe is best positioned to be “the decentralized central bank of DeFi”.

Over my nearly 8 years in crypto, I've seen many projects come and go. Many like flashes in the pan; all the rage today, collapsed and gone tomorrow.

Frax Finance not only remained highly profitable through the "long winter" Bear Market we've just emerged from, but never took a day off. They've brought countless innovations to the space: statistically best-in-class stablecoins, an (now-retired, pending integration to the frxUSD mechanics) anti-inflationary token tracking and matching CPI % to yield, a modified Validium OP Superchain with Celestia DA Layer (and soon to be parallel AI-VM), the only Algo Stable (I'm aware of) that never failed or collapsed, and tons of behind the scenes cooperation with DeFi Super Protocols they will never get credit for.

I wholeheartedly believe Frax Finance and their Vision 2030 developments and partnerships are about to usher in a new era of ai-centric DeFi that will open the gates for a whole new wave of users.

As many of us there are that love managing our portfolios and yield, there are just as many if not more people who don't have time or the desire to learn that will now be able to utilize the many benefits of DeFi without ever needing to understand what a smart contract or Money Lego is.

If we want to onboard the world, AI is very likely the fastest and most efficient way to do it.

As long as I've been here, Frax has proven themselves time and time again, and I think in the very near future anyone who spoke ill of FraxFi, unable to see into the looking-glass, will wake up to reality as $FRAX starts its imminent trajectory to the top 10 mcap coins.

(Not to be taken as financial advice, do your own research. Opinions are my own and to be taken as such.)

Follow @FraxFinance on X keep up with the latest updates.

You can find me on X @Lyule67 where I plan to continue covering FraxFi developments and sharing my thoughts on their growimg importance in DeFi going forward.

Full Disclosure, I do own and utilize most of the protocols referenced in this write-up.

My motivation for doing so was simple:

I’ve been monitoring FraxFi since inception and want to share with everyone what I know, fully believing in the very near future that their on-chain metrics and valuation will soon match their DeFi Reputation as undeniable leaders in the space.

Feel free to comment, remark, agree, or disagree; I would love to hear your thoughts, especially if you disagree woth something I’ve said!

I hope your voyage through web3+DeFi is blessed and fruitful, forevermore.

Til next time,

Thanks for reading, and

Happy Holidays

- Luke SkywalkeI2

PS.

For surviving til the end, Here's some extra alfa:In Theory (; veFRAX Validation Nodes and Native FRAX Restaking should enable enormous yielding opportunities … like the crazy 20:1 staking strategies we all thought about when we discovered EigenLayer… I feel like we’re going to see those come to fruition in full effect on Fraxtal.Once this Flywheel gets going, which seems inevitable, FRAX has the potential to HYPERWARP ALL OF DeFi into a new era on-chain.I believe Frax Finance has everything necessary to achieve the first“Trillion Dollar Stablecoin” status.