Frax Finance has launched the FRAX Burn Engine, a mechanism that uses protocol revenue to fund programmatic buybacks and burns of FRAX. According to its Q3 report, revenue generated by frxETH will flow into the engine in Q4.
frxETH currently holds $120 million in total value locked (TVL). Of the ETH staking revenue it generates, Frax retains 8% as a protocol fee, with 100% of that fee allocated to buying FRAX on the open market and burning it.
Frax Finance Launches FRAX Burn Engine Using Protocol Revenue for Buybacks and Burns
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