Synthetic dollar developer Ethena Labs received the green light for a USDeFRAX liquidity pool with Frax Finance to diversify FRAX stablecoin yield.
The Singularity Roadmap proposal from Ethena Labs was approved and has enabled the protocols to create a USDeFRAX POL with a $250 million ceiling on the defi stablecoin exchange Curve.
Moving forward, USDe’s issuer and Frax Finance plan to deliver dense on-chain dollar liquidity despite concerns that Ethena Labs’ product bears striking similarities to Terraform’s algorithmic stablecoin UST.
Fantom developer Andre Cronje pointed to USDe risk stemming from the asset’s peg system, which depends on collateralized positions to maintain parity with the U.S. dollar. The mechanism is akin to UST’s design, a…
Originally published at crypto.news by Naga Avan-Nomayo. Read more here.