Proposal: Whitelist Frax Share (FXS) with 100K BNT trading liquidity

Proposal to Whitelist Frax Share (FXS)

For this proposal to pass, it requires 35% quorum and 66.7% supermajority.

This proposal is expected to appear on Snapshot for voting on 2021-12-12T17:00:00Z. Make sure to stake your vBNT for voting before this date and time to participate in the DAO decision.


  • Proposal to whitelist FXS.

  • Co-investment of 100,000 BNT.

  • No security concerns that could prohibit whitelist status for Frax; there have been multiple periodic audits by firms including Trail of Bits.

  • Frax has grown to become a significant name in the DeFi and broader crypto industry, initially founded in 2019, and by Sam Kazemian, Travis Moore and Jason Huan.

  • By providing FXS liquidity, it will attract token LPs from the Frax community to stake and swap on Bancor, thereby benefiting the protocol and increasing trade volume as well as opening the door to future integrations.

Token Address: 0x3432b6a60d23ca0dfca7761b7ab56459d9c964d0

Project Website: Frax Finance


The Deepest FXS pools on Ethereum are:

The FXS/FRAX Uniswap v2 pool with $86,957,981 liquidity, $7,695,758 daily volume, and an extrapolated APR from the 24hr fees of 10.03% [1].

The FXS/ETH 1% Uniswap v3 pool with $6.09m liquidity, $3.40m daily volume, and an extrapolated APR from the 24hr fees of 203% [2].

A co-investment of 100,000 BNT opens up space for at least $900k of liquidity in the pool, with BNT at $4.50.

Token Security

FXS does not have an elastic supply or rebase mechanism. The FXS token was created from genesis with a deflationary supply of 100,000,000 FXS. Contracts are standard ERC-20 OpenZeppelin contracts with some modifications. The contracts don’t have any permissions that grant administrators unrestricted mint/burn capabilities.

FXS has a “Very Good S4” safety score on

The top 15 contracts and addresses with the highest concentration of FXS are the token and project contracts, Binance, and vesting wallets.

Figure 1 - Top 15 contract and addresses with the highest concentration of FXS [3]


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

Frax is a new paradigm in stablecoin design. It brings together familiar concepts into a never before seen protocol:

  • Fractional-Algorithmic – Frax is the first and only stablecoin with parts of its supply backed by collateral and parts of the supply algorithmic. This means FRAX is the first stablecoin to have part of its supply floating/unbacked. The stablecoin (FRAX) is named after the “fractional-algorithmic” stability mechanism. The ratio of collateralized and algorithmic depends on the market’s pricing of the FRAX stablecoin. If FRAX is trading at above $1, the protocol decreases the collateral ratio. If FRAX is trading at under $1, the protocol increases the collateral ratio.

  • Decentralized & Governance-minimized – Community governed and emphasizing a highly autonomous, algorithmic approach with no active management.

  • Fully on-chain oracles – Frax v1 uses Uniswap (ETH, USDT, USDC time-weighted average prices) and Chainlink (USD price) oracles.

  • Two Tokens – FRAX is the stablecoin targeting a tight band around $1/coin. Frax Shares (FXS) is the governance token which accrues fees, seigniorage revenue, and excess collateral value.

  • Crypto Native CPI – Frax’s end vision is to build the first crypto native version of the CPI called the Frax Price Index (FPI) governed by FXS holders (and other protocol tokens). FRAX is currently pegged to USD but aspires to become the first decentralized, permissionless native unit of account which holds standard of living stable.

More information on the Frax Finance project can be found here.


The Frax Share token (FXS) is the non-stable, utility token in the protocol. It is meant to be volatile and hold rights to governance and all utility of the system. It is important to note that we take a highly governance-minimized approach to designing trustless money in the same ethos as Bitcoin. We eschew DAO-like active management such as MakerDAO. The less parameters for a community to be able to actively manage, the less there is to disagree on. Parameters that are up for governance through FXS include adding/adjusting collateral pools, adjusting various fees (like minting or redeeming), and refreshing the rate of the collateral ratio. No other actions such as active management of collateral or addition of human-modifiable parameters are possible other than a hardfork that would require voluntarily moving to a new implementation entirely.

More information can be found in the Frax Finance documentation here.

Community and Communication

Frax Finance is active on Telegram. The Frax Finance team also operates on Twitter, and a community-run Medium publication.

Available Audits

Frax Finance was audited by Trail Of Bits in June 2021, and Certik pre-launch. Additionally, the protocol is currently undergoing its second audit with Trail of Bits.

Market and Trading Data

  • FXS’s price at the time of writing is $16.59.

  • All-time high: $28.12 (16th Jan, 2021).

  • All-time low: $1.50 (25th Jun, 2021).

  • Price 90 days ago: $5.34.

  • 35,648,060 FXS in circulation, with a maximum supply of 100,000,000 FXS.

  • The current market capitalization is $591,465,987.

  • The FXS token is available on, among others, Uniswap, Sushiswap, Binance, Kucoin,, Bittrex and HitBTC.

[1] Uniswap Info

[2] Uniswap Info

[3] $20.72 | Frax Share (FXS) Token Tracker | Etherscan


yessssssssssssssssss, happy to see this


This is a great proposal. I am familiar with this project and have been following it since its inception. It’s good to see FXS finally make its way to Bancor. I think that the 100K BNT trading liquidity amount is small but it is definitely a good place to start and we can always increase it as the single-sided staking capacity starts to fill up.

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