TechFlow news, Frax Protocol founder Sam Kazemian detailed Frax v3 and its pursuit of stablecoin design on the 0xResearch podcast.
He stated that Frax v3 aims to create an "all-weather" stablecoin that behaves like a real dollar under various market conditions, including both high and low interest rate environments.
Kazemian noted that the protocol builds upon Frax's existing successes while introducing new innovations, particularly incorporating dynamics from traditional market U.S. yield curves—including short-term Treasury yields and reserve interest rates—to ensure a high degree of decentralization.
He believes that stablecoin security is crucial for long-term growth, and thus Frax is moving toward a more reliable direction. Frax currently plans to transition to 100% external collateral, primarily funded through protocol revenue.
Kazemian also mentioned that Frax earns $30–40 million annually from its market products, and due to "locked liquidity," the protocol is essentially immune to bank runs. He emphasized Frax's high transparency, which supports efficient market operations by providing real-time updated balance sheets and extensive data disclosure.
