This integration is a game changer for developers, offering them the ability to send a query from their smart contract and get the ZK-proven result cheaply and blazingly fast on an L2 chain like Fraxtal, even for data that is from a different blockchain, such as Ethereum. There’s also no need to build out bespoke data processing mechanisms or rely on intermediaries, and developers can leverage the strong security guarantees provided by ZK proofs. In short, this capability unlocks a whole new array of cross-chain and big data applications that weren’t previously feasible.

About Lagrange’s ZK Coprocessor

Lagrange’s ZK Coprocessor tackles the scalability issues of onchain applications by preprocessing blockchain data into a Verifiable Database. It employs an off-chain network of nodes to execute parallelized computations and generate ZK proofs, which are then brought back onchain. The coprocessor relies on a network of provers staked on EigenLayer, ensuring the liveness of proofs with cryptoeconomic guarantees. Nodes failing to deliver correct proofs face economic penalties. This hyper-parallel coprocessor enables developers to query large sets of blockchain data directly from smart contracts efficiently.

How It Works

Lagrange’s ZK Coprocessor consists of independent provers executing computations in parallel under the coordinator’s direction. It interfaces with blockchain data, such as Ethereum, for tasks like reading updates or sending query results. Integrated with Fraxtal, it acts as an intermediary, processing queries from Fraxtal smart contracts about Ethereum data, executing computations, and sending proof-based results back. For instance, in an app allowing Pudgy Penguin holders to mint NFTs, the ZK Coprocessor enables direct querying from Fraxtal, offering gas savings and eliminating the need for separate data processing or oracles.

Exploring Additional Functionalities Together

Looking beyond simple querying of an NFT contract, the Lagrange ZK Coprocessor enables a variety of new dynamic DeFi primitives to be built by developers on Fraxstal. Frax and Lagrange will be continuing to work closely together to pursue use cases related to using large scale verifiable computation to unlock new capital efficient DeFi primitives.

For example, the balance of Frax Shares (FXS) staked by a user on L1 are currently summed with their L2 FXS stake to create their veFXS balance on the veFXSCounter L2 contract. With Lagrange’s ZK Coprocessor, any application on Fraxtal can verify a proof of the result of an SQL query over either the veFXS contract on Ethereum mainnet or Fraxtal L2. This enables applications to easily integrate veFXS positions into their contract logic, irrespective of which chain they are staked on. As Frax and FXS continue to spread across the rollup ecosystem, native staking of FXS can be made possible on veFXS contracts on any other L2. Lagrange’s ZK Coprocessor proofs can act as a glue to easily sum the balance of positions across each of these execution spaces.

Moreover, applications on Fraxtal can implement their own staking logic similar to veFXS with any ERC20 without requiring a sequencer update to adjust the sum of positions within the L2 contract.

Another relevant use case of Lagrange’s ZK Coprocessor with Fraxtal is blockspace incentives based on cross-chain positions. For example, the Flox Rank of a user could be amplified through a boost function that incentivizes users to provide liquidity in a DEX on Ethereum for a FRAX or FXS asset pair. With Lagrange’s ZK Coprocessor, Frax and other protocols building on Fraxtal can easily implement these mechanisms by verifying proofs of SQL computation over Ethereum mainnet state.

About Fraxtal & Frax Finance

Fraxtal is a modular rollup from Frax Finance that utilizes the OP stack for its smart contract platform and execution environment. To fuel the ecosystem, Fraxtal has blockspace incentives called Flox that reward users and developers for spending gas and interacting with any smart contract on the network. The native gas token is Frax Ether (frxETH) issued by Frax Finance.

Frax is a DeFi protocol that issues decentralized stablecoins and supports them with an ecosystem of sub-protocols. Unlike traditional stablecoins that are backed by fiat reserves, Frax achieves stability and ensures decentralization through both a collateralized and an algorithmic approach.

Website | Twitter

About Lagrange

Verifiably compute over blockchain data at a big data scale with Lagrange’s ZK Coprocessor and unlock new data-intensive and cross-chain applications. Also its mission is to unlock new types of data-intensive and cross-chain applications by enabling verifiable computation over blockchain data at a ‘big data’ scale. The way we achieve this is through our hyper-parallel ZK Coprocessor.

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The Best Way to Monitor Your Loaned Assets

Frax is one of the largest algorithmic stablecoin protocols on the Ethereum network, with their stablecoin, $FRAX, additionally implemented on 12 other chains. The decentralized protocol allows users to help stabilize $FRAX, earn yield, swap, and lend on their all-in-one platform.

To borrow on Frax, borrowers must post collateral. Taking collateralized loans carries certain risks, primarily the risk of liquidation. Borrowers need to ensure they do not cross their borrowing limit, which can trigger the liquidation of their collateral.

The Use Of Open DeFi Notification Protocol
Courtesy of Orbs Network

Using the Open DeFi Notification Protocol, Frax users can set up a “Position Health” notification. It will issue an alert when your position gets close to your specified Loan-to-value ratio (LTV). In this way, users have 24/7 monitoring of their position status and can take immediate action to mitigate the risk of liquidation.

In addition to this, Frax farmers can set up a “Pending Reward” notification which will notify the user when there are enough rewards in the veFXS pool to claim.

A Notification Standard for Leading DeFi Projects

The Open DeFi Notification Protocol is an open initiative to provide users with decentralized and free mobile notifications for on-chain events.

Frax joins other top DeFi lending protocols, such as Aave, Venus, and Alpaca Finance. Supported by the Open DeFi Notification app, liquidation risk notifications are one of the most popular use cases by app users.

The addition of Frax makes for an impressive lineup of leading DeFi projects who have already been integrated into the Open DeFi Notification app. For the benefit of their users, it includes Aave, Uniswap, SushiSwap, QuickSwap, PancakeSwap, and more.

All in all, the app supports over 20 protocols across 6 networks: Ethereum, BSC, Polygon, Fantom, Cronos, and Avalanche.

The Protocol has been implemented fully by the Orbs network and will be executed by the Orbs Guardians, making this the 1st fully decentralized implementation of a notification protocol.

Note: The Open DeFi Notification Protocol is a beta version that is still under active development, and all underlying digital assets, blockchain networks, and DeFi platforms.

ABOUT Frax Finance

The Frax Protocol introduced the world to the concept of cryptocurrency. Being partially supports by collateral and partially stabilized algorithmically. With the vision to create highly scalable, decentralized money in place of fixed-supply digital assets like BTC.

Website | Twitter

About DeFi.org

DeFi.org is a community of thought leaders in the field of decentralized finance (DeFi). The community is led by the Orbs Network. Together with a consortium of market leaders in the blockchain and cryptocurrency industry. Collaborate and advance the cause of DeFi innovation.

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dForce provides a complete set of DeFi protocols covering assets, lending, and trading across multiple blockchains. It includes Ethereum, BSC, Arbitrum, Optimism, Polygon, Avalanche, KAVA, Evmos (coming soon), etc. Same as Frax, dForce was invested by Multicoin Capital, as well as CMBI and Huobi Capital.

Furthermore, dForce has already supported the lending and borrowing of $FRAX on dForce Lending (audited by Trail of Bits, ConsenSys Diligence, CertiK, and Certora) on multiple blockchains. The soon-to-be-launched dForce Trade is also going to support the trading of $FRAX by aggregating liquidity across different DEXes with the most favorable price.

In addition, USX is a USD soft-pegged stablecoin launched by dForce. It has a total circulating supply of $141m across Ethereum, Arbitrum, Polygon, Avalanche, Optimism, BSC, Evmos, and KAVA.

dForce has recently launched a FRAXBP-USX pool on Saddle Finance.

Moreover, understand that Frax has deployed a significant amount of POL to power FRAX paired pools on Saddle Finance and has become a crucial holder of veSDL. They’d like to seek support from the Frax community to vote for FRAXBP-USX in order to get SDL emission toward it. Vote through Snapshot.

USX INTRODUCTION

Minting & Redeeming

• Pool-based model: users can mint USX against multiple types of collateral assets through lending protocols integrated with USX. In addition, a range-bound interest rate policy will be implemented to ensure the most competitive rates for borrowers.
• Vault-based model: further expand the collateral type of USX to a broader range of collateral assets including LP tokens, yield tokens, etc. Additionally, each collateral asset will be housed in an isolated pool with customized risk parameters and fixed interest rates.
• Liquid stability reserve (LSR): users can mint/redeem USX against/for supported stablecoins at a 1:1 exchange rate and zero swap fee. Moreover, each collateral asset carries a minting cap to back the issuance of USX. In addition, LSR is currently supported on BSC, Polygon, and Optimism.

Price Stability

USX is designed to maintain a 1:1 soft peg with the U.S. dollar. Its pegging mechanism dictates by the hybrid interest rate policy, as well as the liquid stability reserve module.

• Range-bound interest rate: USX implements a dynamic supply mechanism powered by the liquidity module. When the market demand for USX is high, more USX liquidity will be supplied to lending protocols to ensure the borrowing rate stays competitive, and vice versa.
• Fixed interest rate: in the event of a depeg, DF holders can collectively adjust the interest rate for Vaults through governance to help USX stay on the price target
• Liquid stability reserve: zero slippage and zero fees will unlock a significant source of price stability driven by market arbitrage. Users can buy USX when the price is below $1 and sell USX when the price is above $1 to make a profit.

Liquidity Modules (similar to Frax’s AMO)

• PDLP: PDLP is short for Protocol-Direct-Liquidity-Provision designs to combat USX’s liquidity shortage in secondary venues. It allows the protocol to use USX’s deposit certificates from supported lending protocols, cross-chain bridges, and stable swaps as collateral to mint USX and supply the liquidity directly to satisfy the market demand.
• POO: POO (Protocol-Owned Operator) is an improve version of PCV (Protocol-Controlled-Value). It also leverages treasury assets to mint USX, and exchange them for the relevant pairs asset, or pair them with the relevant assets, gradually acquiring and controlling most of USX’s liquidity in the open market.

Multichain Implementation

USX mint natively on all chains implementing cross-chain liquidity capability. Allowing users to move USX across supported chains with zero slippage. Minimizing liquidity cap (only subject to USX’s liquidity on the destination chain).

Decentralization

USX 100% decentralizes DF holders governing the protocol. Including but not limited to parameter setting, liquidity operation, onboarding of new collaterals, new feature implementation, etc.

Security

Moreover, the USX protocol has undergone extensive code reviews and security audits by Trail of Bits, ConsenSys Diligence, CertiK, and Certora (formal verification). With a bug bounty launched through Immunefi.

Benefits for Frax Community

• LP of FRAXBP-USX can earn SDL emission on Saddle.
• USX empowers by liquidity modules and will seed liquidity to ensure market depth and capture a significant portion of USX trading, generating trading fees for LPs.
• Both dForce and Frax multi-chain protocols implements on Ethereum, Arbitrum, Polygon, Avalanche, Optimism, as well as BSC, and Evmos. Making it easier to expand its lending support to FRAX on different blockchains. In addition, both communities will benefit from more exposure through a fitting and long-term partnership.

ABOUT dForce

dForce is a set of decentralize finance protocols. It covers assets, lending, and trading, serving as DeFi infrastructure in Web3.

ABOUT Frax Finance

Frax is the inventor of the fractional stablecoin & 1st crypto native CPI (Frax Price Index) FPI. Additionally, FRAX is the only stablecoin with parts backed & parts algorithmic FXS.

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ABOUT Saddle Finance

Saddle Finance is an AMM for swapping low-slippage pegged assets like tokenized BTC stablecoins. 

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The Gamma Partners With Frax And Convex Finance. Gamma are pleased to announce that their proposal to add the Gamma FPI-FRAX 0.05% Uniswap v3 pool as a Frax gauge has passed! Liquidity providers of this pair will also be able to stake their LP positions on Convex to earn boosted FXS rewards. This pool will be manage on Optimism, bringing more liquidity, market coverage, and trading volume for FPI and FRAX to the Optimism ecosystem. The addition of the Gamma managed Frax gauge was widely supported by both the Frax and Convex communities with 27 million FXS votes in favor of the proposal on Frax and 9.6 million CVX votes in favor on Convex.

Convex Finance strives to optimize opportunities for liquidity providers on Frax by allowing them to earn trading fees and boosted FXS rewards for their LP positions when staking Frax LP tokens on Convex Finance.

During a bear market condition in crypto, the inflation-indexed stablecoin of FPI and the low impermanent loss pair of FPI-FRAX offers a compelling yield-bearing strategy for Gamma liquidity providers. They will be able to earn trading fees from FPI-FRAX on Uniswap v3 as well as earn boosted FXS rewards by staking their liquidity positions on Convex and Frax. Furthermore, the low gas fee environment of Optimism will make this pair even more attractive for all LPs.

Partnership

This partnership with Frax Finance & Convex, they believe that there will be many future opportunities for collaboration with these protocols. They are also currently working with the Frax tech team on integration. They will make an announcement when the FPI-FRAX pair will be ready for depositing on Optimism.

About Frax Finance

Frax is the first fractional-algorithmic stablecoin protocol. Frax is open-source, permissionless, and entirely on-chain – currently implemented on Ethereum and other chains. Goal of Frax to provide a highly scalable, decentralized, algorithmic money in place of fixed-supply digital assets like BTC.

Website | Twitter |

About Convex

Convex allows Curve.fi liquidity providers to earn trading fees and claim boosted CRV without locking CRV themselves. Liquidity providers can receive boosted CRV and liquidity mining rewards with minimal effort.

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About Gamma

Gamma a protocol designed for the non-custodial, automated, active management of concentrated liquidity pools. Gamma’s protocol is built into a Web Application hosted on the main Gamma site. This protocol is available to both the Public, and Pro entities like DAOs, treasuries, and protocols.

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Retrograde understand the importance of partnering with DAOs and Protocols that have a long term interest in sustainable, deep liquidity on Terra.

FRAX were one of the earliest DAOs to accumulate Convex’s native token CVX, and hold the most of any DAO. They also pay the largest sums in bribes of any protocol on Ethereum to increase the APY of FRAX pools and increase their liquidity.

Their strategy naturally continues with an investment and partnership with Retrograde.

While FRAX helped to bring UST to Ethereum, Retrograde will bring the first FRAX tokens to Terra.

“We are excited to partner with Retrograde and begin FRAX’s journey on Terra, with the first FRAX tokens bridged from Ethereum. It should be fascinating to see how the TeFi ecosystem matures, as Astroport becomes a battleground for DAOs and Protocols to achieve deep liquidity for their tokens” — Sam Kazemian

 

About FRAX

The FRAX team and community share the values held by the Terra community. The end goal of the Frax protocol is to provide a highly scalable, decentralized, algorithmic form of money. The team has a close and powerful relationship with Terra, working closely with TFL to further the cause of decentralized money and dictate the future of stablecoins on Ethereum and beyond.

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About Retrograde

Retrograde is a protocol built on top of Astroport, allowing ASTRO stakers and Astroport liquidity providers to get the most out of the Astroport platform, with the least cost and effort.

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MEDIUM

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