Frax Finance has disclosed a strategic alliance with NEAR Protocol to enhance its multi-chain capabilities and incorporate decentralized artificial intelligence (AI) into the crypto ecosystem.
The objective of this partnership is to introduce innovative solutions across a variety of blockchain networks by utilizing Frax Finance’s expertise in DeFi and stablecoins, as well as NEAR’s robust blockchain infrastructure.
The chain abstraction technology of the NEAR Protocol is a unique feature that enables developers to develop scalable applications that can serve billions of users across various blockchains. This design facilitates the seamless exchange of transactions between chains, thereby fostering scalability and interoperability in decentralized networks. Additionally, NEAR’s sharding technology enhances performance by enabling parallel processing.
A former Google AI researcher founded NEAR Protocol, which is a leader in the integration of decentralized AI applications into cryptocurrency. The platform’s objective is to provide crypto users with AI-driven insights and tools, thereby illustrating NEAR’s dedication to the integration of blockchain technology with AI.
The new partnership is a result of the fact that Frax Finance believes that “decentralized AI functions best with decentralized money.” Frax Finance has already transferred more than $5.5 million in FRAX stablecoins to prominent NEAR DeFi initiatives, including Finance Ref and Burrow Finance. This liquidity injection will facilitate the expansion of these platforms, thereby improving the DeFi ecosystem on the NEAR Protocol.
Furthermore, Frax intends to establish Fraxtal as a central center for cryptocurrency liquidity by incorporating NEAR’s data availability.
The collaboration disclosed its intention to introduce frxNEAR, a liquid staking derivative and stablecoin, on the NEAR Protocol. The objective of frxNEAR is to offer consumers a stable and flexible asset within NEAR’s ecosystem, similar to the successful ETH Liquid Synthetic (sfrxETH). This innovation will enable users to earn yields by engaging in liquid staking.
Frax Finance and NEAR Protocol are also collaborating to directly issue FRAX and sFRAX on the NEAR blockchain. This will facilitate the process of accessing Frax Finance’s assets on NEAR, providing users with additional opportunities to participate in DeFi activities while also leveraging the stability and reliability of Frax Finance’s stablecoins.
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