BrainDAO now has over 2700 Ethereum staked through Frax Finance’s LSD. This will bring revenue to BrainDAO as all profits generated from Frax Ether validators are distributed to sfrxETH holders like BrainDAO. Frax Ether launched in January 2023, the BrainDAO treasury now has 2785 Staked Frax Ether which is equivalent to more than $4.5 million as of writing. The BrainDAO treasury continues to grow its war chest as it now has over $14.5 million in total assets as of writing. The IQ token is backed by the BrainDAO treasury and the treasury is fully governed by HiIQ holders. BrainDAO holds a diversified portfolio of IQ tokens, ethereum, stablecoins, blue chip NFTs, and other assets.
BrainDAO has been steadily accumulating ETH over time. ETH isn’t the only asset that BrainDAO has accumulated since its launch. The BrainDAO treasury has also been accumulating FRAX stablecoins through the Time-Weighted Average Market Maker (TWAMM) on Fraxswap along with other notable assets.
Frax Finance, the leading DeFi known for the world’s first fractional stablecoin and crypto native consumer price index launched Frax Ether in October 2022. Frax Ether is a liquid ETH staking derivative designed to uniquely leverage the Frax Finance ecosystem to maximize staking yield and smoothen the Ethereum staking process for a simplified, secure, and DeFi-native way to earn interest on ETH.
BrainDAO chose liquid staking with Frax Ether since it offers the highest return and security. Additionally, by opting to use a liquid ETH staking derivative instead of staking ETH in another form, staking yield can be accrued much more simply, abstracting the need to run validators, allowing yield to be earned on any amount of ETH. allowing withdrawals at any time and of any size, and allowing far greater composability throughout DeFi.
ETH in the Frax ecosystem comes in two forms, frxETH (Frax Ether), and sfrxETH (Staked Frax Ether).
frxETH acts as a stablecoin loosely pegged to ETH, so that 1 frxETH always represents 1 ETH and the amount of frxETH in circulation matches the amount of ETH in the Frax ETH system.
sfrxETH is an ERC-4626 vault designed to accrue the staking yield of the Frax ETH validators. At any time, frxETH can be exchanged for sfrxETH by depositing it into the sfrxETH vault, which allows users to earn staking yield on their frxETH.
By holding highly liquid stablecoins and Staked Frax Ethereum, BrainDAO provides the IQ token with more stability and protection during bear markets. While BrainDAO’s exposure to blue chip NFTs, the IQ token itself, and other assets allow the token to grow more quickly during bull markets.
This is just the start of BrainDAO’s growth as we plan to further diversify the treasury and bring in new cashflow to BrainDAO.
About IQ
The IQ token powers a knowledge ecosystem including applications such as IQ.wiki, the world's largest cryptocurrency and blockchain encyclopedia. IQ is a DeFi and governance token. The token is governed by BrainDAO which also includes BrainDAO's treasury of digital assets.
