We are excited to announce Frax Protocol has partnered with Celer’s cBridge in combating vendor lock-in with its novel bridge mechanism that is aligned with the vision proposed for the Open Canonical Token Standard multi-chain bridging! Now, through cBridge, $FRAX tokens can be bridged across the Binance Smart Chain, Polygon, Avalanche, Fantom, Arbitrum, and Boba with lower fees and even faster transaction speeds. Support for Frax Protocol’s governance token $FXS and more bridging integrations are scheduled for the near future, so stay tuned!
The Frax Protocol introduced the world to the concept of a cryptocurrency being partially backed by collateral and partially stabilized algorithmically. Frax aims to be the first stablecoin protocol to implement these two design principles in order to create highly scalable, trustless, extremely stable, and ideologically pure on-chain money. The Frax protocol is a two token system encompassing a stablecoin, Frax ($FRAX), and a governance token, Frax Shares ($FXS). The protocol also has a pool contract which holds USDC collateral where pools can be added or removed with governance.
With a deep understanding of the current multi-chain bridging solutions, Frax has long been aware of the risk of vendor lock-in and has implemented a novel bridge compatibility mechanism to allow multiple bridges to serve the entire Frax ecosystem. Thus, avoiding vendor lock-in by allowing approved bridges to swap bridged Frax and FXS with their canonical token on each of the different chains.
The Open Canonical Token Standard enables protocols to onboard multiple bridging solutions at the same time as well as manage cross-chain transfer quotas on the different solutions by assigning and adjusting transfer caps according to their preferences on fees, finality speed, and the stability of the bridges. Celer is aligned on the vision going forward in creating a vendor lock-in free, third-party canonical token bridge ecosystem and will collaboratively promote an open standard that is partly inspired by FRAX’s implementation.
Celer and Frax will continue to be a strong lead in support of the Open Canonical Token Standard. With this standard, projects are no longer bound to one specific bridge in cross-chain asset transfers and hence, the security risks of different ecosystems integrated with third-party bridges are reduced systematically. The standard allows projects and ecosystems to adapt quickly with the flourishing blockchain interoperability space, while enabling new interoperability advancements. We hold a strong belief that this standard should become a community-driven effort in order to push it as the default deployment model when projects expand into more blockchains.
Supporting the Frax Protocol in its multi-chain strategy by enabling the bridging of $FRAX and $FXS tokens across multiple different chains is the first step in the aligned vision of Celer and Frax. With Celer’s generalized message passing SDK coming close to its release, the two teams will discuss more opportunities in offering Frax users access to a wide spectrum of DeFi scenarios on different chains with a unified user experience.