Frax USD (FRXUSD)

Sam Kazemian explains the Frax business model in under 4 minutes:

frxUSD is a GENIUS‑compliant stablecoin operating system.

The model: stream the risk‑free rate to the most important DeFi hubs (Aave v4, Curve pools) so frxUSD becomes the default digital dollar.

The Clarity Act could make this the standardized model.

Monetary premium capture on idle holdings + savings vault deploying into Aave, carry trades, and RWA strategies.

The whole business explained, bottom‑up.

Borrow rates so low users have to rub their eyes.

On @Aave V4, users can borrow $frxUSD against blue‑chip assets at around 0.7%.

That frxUSD then becomes productive money as it can be deployed across DeFi to earn more than the cost of the borrow.

That’s what it looks like when money actually works for the user.

frxUSD just became the borrower's best friend.

I was going through borrowing markets earlier and the frxUSD rate on @aave V4 stopped me. 0.74%. I had to double check it.

Most stablecoins charge you 5%, 8%, sometimes double digits to borrow. The protocol captures the yield and keeps it. You get nothing back. frxUSD is doing the opposite and the rate is the proof.

At 0.74%, you can borrow and deploy into almost anything with a pulse and come out positive. The math barely has to work in your favor.

Then I saw @StaniKulechov's tweet and it clicked even more. "USDG and frxUSD represent the new gen stablecoins that value sharing more rewards with the users. All stablecoins should move in this direction."

When the person who built Aave says that about a stablecoin sitting in his protocol at 0.74%, you pay attention.

@Fraxfinance is not competing on yield tricks or points campaigns. They are competing on what it actually costs you to borrow.