Frax Finance is a household name for seasoned DeFi users. In the last year, they’ve launched Fraxlend and Fraxswap alongside several other products. This post will look at Frax’s newer product launches and examine their traction.

Although protocols using RWAs currently comprise a small part of DeFi, the potential of this sector has a high ceiling.

Chicken bonds are a bonding mechanism that can be applied to yield-bearing tokens to bootstrap protocol-earned liquidity while boosting yields for bonders. The enhanced yield on boosted tokens is derived from yield generated on liquidity owned by the protocol as well as liquidity from users bonding underlying tokens to newly issued boosted tokens.

Instead of just P2Pool matching, as with Aave and Compound, Morpho uses a hybrid model. It combines P2P matching with the underlying P2Pool market as a fallback.

Aave and Compound have paved the path for the basic money market design space in DeFi. While Euler's TVL is incredibly small compared to them, it has been a standout year for the protocol's growth.