Frax Finance Dives Into DeFi Liquidity With $250 mn USDe Allocation
Frax Finance, a decentralized finance lending protocol, has approved a proposal to allocate $250 million of Ethena Labs’ USDe to a new liquidity pool.
This move is part of Frax’s Singularity Roadmap, which aims to create an automated market operation for the minting of new FRAX tokens backed by overcollateralized debt.
The proposal will create one of the deepest liquidity pools in the DeFi space and allow Frax to diversify its backing yield.
Ethena Labs has added USDe POL to its liquidity pool, creating one of the deepest pools of dollar liquidity on-chain. The new Curve-based liquidity pool held $44.9 million worth of liquidity as of 10:45 am UTC.
Ethena Labs surpassed the $2 billion mark in total value locked (TVL) on April 6, less than two months after USDe was launched on the mainnet on Feb. 19.
(With inputs from Shikha Singh)
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