We are thrilled to share the exciting news that BrainDAO’s treasury has surpassed a significant milestone, with over 3000 ETH staked through Frax Finance's Liquid Staking Derivative (LSD), Frax Ether. This will bring revenue to BrainDAO as all profits generated from Frax Ether validators are distributed to sfrxETH holders like BrainDAO.
Frax Ether was launched in January 2023, and we are proud to announce that the BrainDAO’s 3000 Staked Frax Ether is currently valued at more than $6 million. This remarkable growth has fortified the BrainDAO treasury even further, which now holds over $16.9 million in total assets.
BrainDAO's treasury has been diversifying its portfolio, including holdings of FRAX stablecoins through the Time-Weighted Average Market Maker (TWAMM) on Fraxswap, along with other notable assets such as WBTC, WETH, cvxFXS and more.
Frax Ether, a leading liquid ETH staking derivative, was founded by Frax Finance in October 2022 and has proven to be an exceptional choice for the BrainDAO treasury. It uniquely leverages the Frax Finance ecosystem to maximize staking yield and streamline the Ethereum staking process, providing a simplified, secure, and DeFi-native way to earn interest on ETH. Our decision to utilize a liquid ETH staking derivative with Frax Ether has brought numerous advantages, including higher returns and enhanced security. Additionally, it abstracts the need to run validators, enabling yield to be earned on any amount of ETH, while also allowing for easy withdrawals at any time and of any size. This versatility and composability throughout DeFi make it an ideal option for BrainDAO.
Within the Frax ecosystem, ETH exists in two forms: frxETH (Frax Ether) and sfrxETH (Staked Frax Ether). FrxETH acts as a stablecoin, pegged to ETH at a 1:1 ratio, ensuring its value is always linked to Ethereum. On the other hand, sfrxETH is an ERC-4626 vault designed to accumulate the staking yield of the Frax ETH validators. Users can easily exchange frxETH for sfrxETH, allowing them to earn staking yield on their holdings.
By maintaining a strategic balance between highly liquid stablecoins and Staked Frax Ethereum, BrainDAO provides the IQ token with more stability and protection. Simultaneously, our exposure to blue-chip NFTs, the IQ token itself, and other assets enable its growth to accelerate during bull markets.
Stay Tuned as BrainDAO’s future plans include further diversification of our treasury and the introduction of new cash flow mechanisms to reinforce BrainDAO's position.
