lending protocol Frax Finance has recently passed a community governance proposal that greenlights a $250 million allocation of Ethena Labs’ USDe to a new liquidity pool.enables the creation of an automated market operation that will allow the minting of new FRAX tokens backed by overcollateralized debt. The proposal was approved on April 5.
“As of yesterday, FRAX has begun adding USDe POL which will create one of the deepest pools of dollar liquidity on-chain, and enable FRAX to diversify their source of backing yield.”
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