By
Mayowa Adebajo
June 18th, 2024
Frax Finance has announced a strategic partnership with NEAR Protocol to advance its multi-chain capabilities and integrate decentralized artificial intelligence (AI) into the crypto ecosystem.
This partnership aims to leverage NEAR’s robust blockchain infrastructure and Frax Finance’s expertise in stablecoins and DeFi to introduce innovative solutions across diverse blockchain networks.
Advancing AI on NEAR Protocol
NEAR Protocol stands out for its chain abstraction technology, which helps developers create scalable apps that can serve billions of users across different blockchains. This design enables seamless transactions across chains, promoting interoperability and scalability in decentralized networks. NEAR’s sharding technology also boosts performance by allowing parallel processing.
Founded by a former Google AI researcher, NEAR Protocol leads in integrating decentralized AI apps into cryptocurrency. The platform aims to give crypto users AI-driven insights and tools, demonstrating NEAR’s commitment to blending AI with blockchain technology.
According to Frax Finance, “decentralized AI works best with decentralized money”, hence the new partnership. Frax Finance has already bridged over $5.5 million of FRAX stablecoins into top NEAR DeFi projects like Burrow Finance and Finance Ref. This liquidity injection will support these platforms’ growth, enhancing the DeFi ecosystem on NEAR Protocol.
In addition, Frax aims to integrate NEAR’s data availability into Fraxtal, establishing it as a central hub for cryptocurrency liquidity.
Introducing frxNEAR: A New Era in Stablecoin Innovation
The collaboration unveiled plans to launch frxNEAR, a stablecoin and liquid staking derivative, on NEAR Protocol. Similar to the successful ETH Liquid Synthetic (sfrxETH), frxNEAR aims to provide users with a stable and flexible assets within NEAR’s ecosystem. This innovation will allow users to participate in liquid staking to earn yields.
Frax Finance and NEAR Protocol are also teaming up to issue FRAX and sFRAX directly on the NEAR blockchain. This will simplify access to Frax Finance’s assets on NEAR, offering users more opportunities to engage in DeFi activities while benefiting from the stability and reliability of Frax Finance’s stablecoins.
Frax Finance’s Future Prospects: $100 Billion TVL Incoming?
As part of its multichain vision, Frax Finance recently unveiled its singularity roadmap. The roadmap highlights its vision to propel the total dollar value of crypto assets locked in its layer 2 blockchain, Fraxtal, to an impressive $100 billion by the close of 2026. To achieve this goal, Frax Finance plans to launch 23 layer 3 protocols within the next year.
These layer 3s will introduce new assets such as frxNEAR, frxTIA, and frxMETIS alongside existing assets like FRAX, sFRAX, and frxETH. All these assets will be issued and integrated into the Fraxtal ecosystem, further expanding its utility and accessibility. The crypto community eagerly awaits these developments, anticipating Frax Finance to continue pioneering innovative solutions in the DeFi space.