Many of us who invest with DeFi are familiar with Wrapped tokens. And two wrapped tokens, Wrapped BTC and Lido Staked Ether are in the top 35 market value of all crypto projects. So we know they are popular and they work. Less well-known are Frapped tokens.
Have you ever heard of Frapped tokens before?
Most of us haven’t. Usually, the closest we come to anything frapped is when we go to Starbucks. But no, not only are there frapped tokens, they are valuable to the DeFi sector. Let’s see what they are.
Introduction to Frapped
Frapped is a partnership between Multichain (started by the Anyswap guys), Popsicle Finance, and Tether. The goal is simple. It’s to move Tether across any EVM-compatible blockchain. And right now, that’s a lot of blockchains since many are compatible or run the Ethereum Virtual Machine.
So far, Frapped is frapping Tether for use on BSC and Fantom blockchains. Like many of the better wrapping solutions, a frap is 1:1 and lets you move it to compatible chains.
USDT Expands to 2 More Chains
Now with BSC and Fantom, thanks to frapping, Tether now is on 11 blockchains. Before this, based on their own self-reporting on their website, Tether was on nine. While on nine different chains, the more practical story is that 90% of all Tether is on either Ethereum as a ERC-20 token or Tron as a TRC-20 token.
USDT is a popular temporary home for your crypto right now. In these current market conditions, we know many of you are in stablecoins or have a higher allocation to stables than usual. And if you are like us, then you are looking for a way to put them to work.
An Example of Using Frapped USDT
With access to Tether on Fantom now, this means one of the fastest growing ecosystems can offer more options for income, yield farming, staking, or pooling. Spiritswap, who is one of the rising stars of the Fantom ecosystem has this on offer right now.
And with this, you get the reduced risk of impermanent loss because we have 2 stablecoins in this pool of Frapped USDT and USDC paying a healthy 13.98%. This pool has the 6th most liquidity on Spiritswap and the #1 liquid pool is 2 stablecoins also, the DAI/USDC pool. The low risk and wide availability of the stablecoins in these pools is a very attractive farming option, especially now.
And this is just one option that’s now open to you because Frapped brings Tether to Fantom. There are others both on Fantom and on BSC. Frapped gives us what we want. More options.
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