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Author: William M. Peaster, Bankless; Compilation: Deng Tong, Bitchain Vision World
Frax Finance has always been one of the most innovative agreements in the cryptocurrency field.This is a stabilized currency agreement, so the project creates tokens linked to the value of other assets in order to easily use it throughout the encrypted economy.
This month, they launched the FRAX Bonds (FXB) to complete the V3 upgrade of the FRAX token, which changed the matter.
In simple terms,FRAX Bonds is similar to traditional bonds, but it operates in blockchain and provides equivalent returns to short -term US Treasury bonds in the traditional financial sector.This dynamic allows cryptocurrency investors to obtain one of the most popular real -world assets (RWA), but it is exactly on the chain.
Track the current and historical activities of FRAX stability and protocol on FAC
How to operate FRAX Bonds
When you buy FRAX Bonds, you essentially buy a commitment to receive a certain number of FRAX stable coins to receive a certain number of FRAX stable coins in the future.
This process is similar to borrowing funds and recovered with interestHowever, in this case, “interest” is reflected in the discount price of your future value when you invest.therefore,FXB tokens do not directly track the yield of government bonds -they just simulate them in an encrypted native wayEssence
The main features of FRAX Bonds:
Date of Expiry—— Each FXB has a specific expiration date, which can be exchanged for FRAX stablecoin.FRAX provides bonds with different expiration dates, allowing investors to choose according to their investment vision.
Equivalent—— Although FXB does not pay cyclical interest like traditional bonds, they are sold at discount.This means that you buy them at the price below the expiration, similar to obtaining interest.
Chain operation—— All aspects of FXB, from distribution to exchange, are carried out on the blockchain to ensure the inherent transparency and security in the decentralized finance.
Integration with DEFI——FXB can be used in different decentralized financial applications, such as providing liquidity on CURVE Finance, adding another level of practicality and potential income to bond holders.
In general, FRAX Bonds aims to meet the needs of various investors. Whether you are a professional for a professional for stable and low -risk, or beginners want to realize the diversification of encrypted investment portfolios.By combining the familiarity mechanism of traditional bonds with the innovation of the blockchain, FXB provides investors with a new accessible entrance to DEFI.
How to buy FRAX Bonds
If you are interested in buying FXB tokens, you first need to get some FRAX, such as trading on Uniswap, because FRAX is the exchange medium in the FRAX ecosystem.Once you are ready to FRAX, you can follow the steps below:
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Go to the app.frax.finance/fxb/overView and connect your wallet.
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In the “Auction” tab, you will see FXB issuance with different expiration dates -tokens that comply with your expectation timetable by clicking.Please note that the “expiration rate” is the expected total return rate if it holds the FXB maturity date.
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In the subsequent “purchase bond” interface, enter the number of bonds you want to buy.
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Click “Buy”.
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Use your wallet to sign the approval transaction and subsequent purchase transactions to complete the entire process.
That’s it!Once the FXB token expires, you can exchange them on the Frax Finance page to get the discount FRAX.
What else can I do with FXB tokens?
You can use your FXB for DEFI to earn additional benefits on your bond’s basic due yield.For example, Curve provides Frax-FXB-20261231, FRAX-FXB-20240630 and FRAX-FXB-20261231 liquidity pool. Defillama currently estimates that these liquid pools will provide up to 60%of their annualized return on CRV tokens.
What is this idea?Stock FRAX and FXB tokens into the automation pool of CURVE to earn trading costs and CRV rewards as returns to help you promote tokens exchange services.
Future map
FRAX Bonds is very important for FRAX because they realize the creation of the income curve. This dynamic helps determine that the value of lending FRAX to the protocol changes with time.This curve is essentially the time cost of borrowing activities in the FRAX ecosystem.
In terms of users, the FXB token provides opportunities for encrypted investors who seek low -risk investment, similar to government bonds, but have an additional advantage on the chain.This method enables investors to experience quite returns as traditional finance, while at the same time enjoy accessability, security and transparency on the chain.
