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Benefit from Frax’s DeFi opportunities, using Kiln’s infrastructure
Frax
What is Frax?
Frax Finance is a decentralized protocol reshaping the stablecoin landscape through a hybrid approach that combines algorithmic and collateralized mechanisms for unparalleled stability and scalability.
Its primary stablecoin, FRAX, is pegged to the US dollar and adjusts its collateral ratio dynamically based on market conditions, ensuring scalability and stability. Alongside FRAX, the ecosystem includes innovative products like the Frax Price Index (FPI), an inflation-pegged stablecoin tied to a consumer goods basket, and frxETH, a liquid staking derivative for Ethereum that offers seamless staking rewards through its sfrxETH counterpart.
Why bring DeFi to your users?
After staking, DeFi is the next source of digital asset rewards. Stablecoins are a $170 billion market and growing, but less than 4% of stablecoins natively earn interest for holders. In comparison, over 50% of PoS and dPoS assets are staked.
Kiln DeFi is the tech stack that enables integrators to seamlessly support and monetize DeFi in any Web3 product.
DeFi is the next step in your crypto earn offering after supporting staking. Diversify your rewards opportunities and benefit from service fees on your users’ stablecoin rewards.
Kiln DeFi is:
- 1100% onchain
- 2Seamless
- 3Control your own pricing model
How can you offer Frax rewards with Kiln DeFi?
💡 You can start monetising Frax’s opportunities in less than a week with Kiln DeFi.
- Deploy your custom Kiln DeFi vaults
- Integrate into your UI quickly—often in less than a week (see docs)
- Your users start earning supply rewards
Reach out to us if you need help to integrate Kiln DeFi.
How can you offer Frax rewards with Kiln DeFi?
In the context of Decentralized Finance (DeFi), “rewards” refers to the earnings that a user receives from supplying or lending their assets a DeFi protocol such as Frax. DeFi platforms facilitate peer-to-peer lending and borrowing through smart contracts on blockchains like Ethereum.
In DeFi protocols like Frax, supply rates fluctuate mainly based on borrowing utilization. Higher borrowing demand increases supplier reward rates. Additional incentives and market volatility also impact these rates. Economic conditions, such as bull or bear markets, influence activity levels, with higher activity boosting yields and lower activity reducing them.
From 2.5% APY in a bear market to 22%+ during peak market activity, DeFi rewards like Frax’s can drive a significant additional source of rewards for integrators.
Protocol card
Supported assets
FRAX (staking only)
Supported EVMs
Ethereum
APR
~9%
TVL
622M+€
Frax FAQ
What is Frax?
Frax is a decentralised finance (DeFi) infrastructure that includes a stablecoin protocol, a lending protocol, and a swap protocol. It issues multiple stablecoins alongside various other non-stablecoin tokens, serving as a versatile infrastructure in the DeFi space.
What stablecoins or tokens are supported on Frax with Kiln DeFi?
Only Staked FRAX (sFRAX) is available through Kiln DeFi.
What are the rewards associated with Frax and Kiln DeFi?
Staked FRAX (sFRAX) distributes weekly Frax Protocol yield in FRAX stablecoins. sFRAX tokens represent proportional vault shares, redeemable at the pro-rata rate. Its APY aims to track the U.S. Federal Reserve’s IORB rate ("risk-free rate") via an oracle, though alignment with this benchmark is not guaranteed.
Is there a minimum amount of assets to lend on Frax?
You can supply any amount you wish, with no minimum or maximum limits. However, it's important to note that for very low amounts, the transaction costs may exceed the expected earnings.
Do the end users of the integrator maintain custody of their assets when staking on Frax?
When users stake assets on Frax through an integrator like Kiln, they deposit their assets into Frax's smart contracts, which manage staking operations. These contracts are non-custodial and permissionless, meaning that while the assets are controlled by the smart contracts during the staking period, users retain the right to withdraw their assets according to the protocol's terms.
Is there a lockup period when staking assets on Frax?
It's important to note that specific lockup periods and conditions may vary across different staking contracts within the Frax ecosystem.
How do I get started with Kiln DeFi?
Contact your account manager or complete our form to begin the Kiln onboarding process and access our suite of solutions.