Frontier acts as a template for stablecoin markets with options reminiscent of adaptive rates of interest and excessive loan-to-value ratios.
Shortly after asserting its personal native decentralized change (DEX), DeFi protocol Euler Finance has unveiled its stablecoin lending market infrastructure, Frontier.
Frontier is “built to turbocharge the growth of all stablecoins” and introduces an incentives pool for onboarded initiatives which might be competing to innovate designs and distributions for stablecoin-related markets.
Frontier makes use of a hybrid lend-swap market on Euler by means of the protocol’s lately launched automated market maker (AMM), Euler Swap. Frontier serves as a template for stablecoin markets, that includes adaptive rates of interest and excessive loan-to-value ratios whereas lowering the price of DEX liquidity for stablecoin protocols by means of the Euler Swap integration.
For retail customers, lenders can earn risk-adjusted yields remoted to a single asset, with entry to adaptive charges and customizable DEX LP price constructions. Frontier kicks off with introductory markets from Renzo, Midas, and Stage.
Euler has staged a exceptional comeback since relaunching in September 2024. The protocol’s whole worth locked has surged to the $1 billion mark in roughly 9 months, driving its EUL token as excessive as $9.64 in Could, its highest worth since 2022.
Frontier is launching because the profitable Circle IPO fuels renewed curiosity within the stablecoin market. The whole stablecoin market capitalization has been trending upward for the final two years and now stands at an all-time excessive of $250 billion.
