What You Need to Know About Stella x Radiant
Revest Finance: Integration w Frax & Future of FNFTs
GM, this is your Daily Bolt briefing.
One of the best parts about crypto is collaboration. Competition and collaboration alike are important factors that help to build a better experience for DeFi users over time. Today, we’re providing you with some high-level insights into two integrations, between Frax and Revest Finance, and Radiant Capital and Stella.
Over and out ⬇️
2/ Revest Finance Twitter Space - Regen Radio with Frax Finance
Preview: Resonate is joined by Travis Moore, Traub, Taylor, and Thanh to discuss Frax Finance, FNFTs, and more! Click here to listen to the full episode (48 mins).
Read our Note (6 mins) and save 42 mins.
Here are some key takeaways:
Discussing Frax v3, Travis mentions that Frax gov, a full on-chain governance system, is likely to be the first thing they release from Frax v3. The system will include two different governance contracts -
Alpha and Omega. The Alpha contract requires a high quorum and is intended for major actions, while the Omega contract handles routine tasks and can short circuit in case of a Black Swan event. Travis expects the Frax gov to be out in a month or two.
Travis also talks about Frax bonds, a traditional bond system aimed at reducing the circulation of $FRAX. The specifics of the bond issuing and pricing will be decided through governance, and the code is currently under construction.
When asked about the introduction of the Frax chain, Travis says that it will likely be the last component to be rolled out. They aim to launch a testnet by the second half of 2024. Frax chain will initially focus on stablecoin payments and projects directly benefiting the Frax ecosystem, with a hybrid rollup system. They also plan to replace the use of WETH with FrxETH as the gas token on the Frax chain.
Taylor talks about the arrangement between Frax and Revest Finance. Users lock up their Velodrome VELO-USDC, frxETH–ETH LPs on Optimism for four weeks and receive all their future yield upfront. This arrangement ensures that Frax has sticky liquidity.
Rob says that Revest protocol makes Frax’s veFXS and veFPIS lock completely liquid as financial NFTs (FNFTs). It introduces flexibility, making it possible to have multiple $veFXS locks with different durations.
Thanh explains the implementation of their project on top of the Revest core technology. Users can deposit their $FXS or Frax Price Index Share ($FPIS) into Revest's smart vault and receive an FNFT. Users can see all the relevant information in real-time and perform operations like depositing additional amounts, extending the locking period, or claiming the yield directly on the FNFT. The system has been thoroughly tested.
Travis mentions that he and Sam Kazemian (the other founder of Frax) are on the same page regarding the potential for NFTs in complex financial instruments. He believes that NFTs are underappreciated for this application, and suggests that they could be leading in this sphere in the next bull market.
Travis says that the Frax has been a key focus and a beacon in the crypto bear market. He also talks about the potential of the Frax Price Index Share ($FPIS), expressing an intention to fully utilize it.
Rob suggests the current market conditions will improve. He anticipates interesting collaborations in the future, specifically regarding Real-World Assets (RWAs).
Travis agrees, highlighting that RWAs will be a significant area of focus. He mentions the current SEC regulations that are impacting the market, believing that resolution in one way or another will stimulate the market.
1/ Radiant Capital - Introduction to Stella and Integration with Radiant
Preview: Isaac hosts Tascha to discuss Stella Protocol, Radiant integration with Stella, its use cases, and more! Click here to listen to the full episode (55 mins).
Read our Note (4 mins) and save 51 mins.
Here are some key takeaways:
Stella Protocol is a leveraged strategies protocol with 0% cost to borrow.
Tascha talks about Stella, which was previously known as Alpha Finance. She states her involvement in crypto since 2017 and the formation of Alpha Finance in 2020. Their focus has been to build and experiment with various DeFi protocols, including the creation of the concept of leveraged yield farming.
She talks about Stella's mission: to redesign how leveraged DeFi works on-chain to ensure users do not get wrecked. Users who want to take a leveraged position can borrow liquidity on Stella without any borrowing costs. If the position is profitable, Stella will take a cut from the profits, which is then sent to lenders as lending APY.
Tascha talks about the benefits of Radiant-Stella integration, allowing users to leverage up on providing liquidity to the RDNT-ETH pool on Uniswap and to lend Radiant’s token (RDNT). These options provide instant liquidity with no vesting or locking period.
Tascha explains why they chose to integrate with Radiant, saying a strong community and multiple options for token utility and usage as key factors. She says that a strong Radiant community will likely explore ways to earn more with their Radiant tokens through Stella.
Tascha mentions that they see this integration as just the beginning and are open to exploring further collaborations with Radiant in the future. Tascha says that there are no restrictions for RDNT token holders to use their tokens on Stella.
Tascha explains their ongoing Lender incentive program, where anyone who opens a leverage position and closes at a profit before July 6th, 2023 8 AM UTC - July 20th, 2023 8 AM UTC, gets a 20% profit top-up from Stella.
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