The core team behind decentralized finance (DeFi) protocol Frax Finance may soon follow a proposal from leading decentralized exchange (DEX) Uniswap to distribute a portion of its protocol fees to stakers of its native token, Frax CEO and founder Sam KAZEMIAN told CoinDesk. The governance and utility token of the ecosystem is FXS. Users who stake their FXS receive veFXS tokens, allowing them to retain their utility and governance rights.
veFXS tokens can be staked on the Ethereum network and initially on Layer 2 of Frax Finance, Fraxtal. The proposal would recommend sharing revenue from the protocol with veFXS stakers, Kazemian said in an interview. Last week, Uniswap proposed rewarding UNI token holders who participate in staking and delegate their staked tokens with a portion of DEX fee revenues. The crypto community supported this proposal, causing UNI to grow by 60%. Several other DeFi tokens, including COMP, AAVE, and SUHI, also saw increases in value.
Several crypto market participants, including analyst pseudonymous Ignas and stablecoin-focused decentralized exchange Curve, reacted positively to the post on social media. At the time of writing, FXS was changing hands at $8.44, a loss of 0.2% in 24 hours, according to CoinDesk. The CoinDesk 20 Index reported a 0.68% gain in the broader market.
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