FRAX

8/11/2022 - Tokemak USD Market Making has a 30d APY of 0.85%, a TVL of 530,896, and an Exponential Risk Rating of D. This pool takes your FRAX deposits and pairs them with other protocol tokens to facilitate trades on decentralized exchanges.

Tokemak USD Market Making on Ethereum (FRAX)

This pool takes your FRAX deposits and pairs them with other protocol tokens to facilitate trades on decentralized exchanges. Your yield comes from inflation emissions in the form of TOKE, the native protocol token.

FRAX is the first fractional-algorithmic stablecoin partially collateralized by USDC stablcoins and the FXS governance tokens.

This pool serves as a yield-generating savings account for you to earn yield on your USD stablecoins

Investment Strategy

Fundamentals

Risk

Risk of losing your entire investment due to systemic issues. Based on chain, protocols and assets.

Reflects how much principal is at risk due to the nature of the pool`s economic design

Tokemak USD Market Making

Pool Design

Reflects how liquid the asset is, collateralization level, dependency risks, and reliance on centralized entities

Asset Strength

Reflects the economic design of the asset and convex relationships

Asset Tokenomics

Code quality of the underlying smart contracts

Tokemak

Protocol Code Quality

Reflects how long the protocol has been around, the value of the assets deposited in the protocol and its level of decentralization

Protocol Maturity

Protocol’s systemic risks or ponzi like dynamics that can lead to loss of principal

Protocol Design

Reflects how long the blockchain has been running and the total value of assets on the network

Ethereum

Chain Maturity

Reflects the blockchain’s fundamental risks, total value invested, and level of decentralization

Chain Design

Reliability of the underlying blockchain from network congestion or halts

Chain Reliability

Pool Fundamentals

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Yield Source

Your yield consists purely of protocol emissions on the Ethereum blockchain

There are short-term incentives to encourage more deposits into the pool