Frax, Terra-Backed 4pool Goes Live on Fantom Network, Attracts $31M

Frax is working on supporting Fantom projects interested in joining the yield pool, its founder confirmed.

Apr 21, 2022 at 6:48 a.m. UTC
Updated Apr 21, 2022 at 2:47 p.m. UTC

Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

The Curve-based yield farm 4pool is live on the Fantom network ahead of its eventual launch on Ethereum, data shows.

  • 4pool is composed of two decentralized stablecoins, UST and Frax’s FRAX, and two centralized stablecoins, USDC and USDT. It aims to increase the utility of Terra’s UST stablecoins through a partnership with Frax and Redacted Cartel, a tool for earning yields on locked tokens.
  • Curve data show the 4pool on Fantom has already locked up $31 million in value hours after launch, with over $2.4 million in traded volume. The pool is paying out daily yields of nearly 0.5%, the data shows. The pool was created after a governance vote on Curve.
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4pool is already the third-largest pool on Fantom. (Curve)

  • Data shows the pool holds $9.7 million in FRAX, $8.4 million in USDC, $4.9 million in Terra’s UST stablecoin, and $7.9 million in tether (USDT).
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How the 4pool reserves are made up. (Curve)

  • 4pool will initially be tested on the Fantom and Arbitrum networks, and later on Ethereum, according to its developers, with its creators aiming to make it one of the most liquid trading pools on Curve. Curve remains the biggest decentralized finance platform on Ethereum with over $21 billion in value locked.
  • Pools currently deployed on Curve are backed by centralized or decentralized stablecoins, wrapped tokens – such as wrapped bitcoin – or a basket of various assets.
  • 4pool, however, will bring together UST and FRAX, the two largest decentralized stablecoins, with a cumulative backing of over $19.6 billion, and USDT and USDC, the two largest centralized stablecoins, with a cumulative backing of $133 billion. This would make it one of the most liquid decentralized pools within the crypto ecosystem.
  • Meanwhile, Frax Finance founder Sam Kazemian said in a message to CoinDesk that projects interested in the 4pool would receive operational support from the protocol.
  • “FRAX and Terra look forward to supporting all the projects that use 4Pool for their stablecoin yield & liquidity needs,” Kazemian said.

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Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

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Shaurya is an analyst/editor for CoinDesk's markets team in Asia.

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