Frax governance is currently evaluating a proposal to seed a Morpho lending market with the bdUSD and frxUSD stablecoins. This initiative, at the temperature check stage, aims to expand liquidity and borrowing demand for Frax ecosystem stablecoins. Morpho allows protocols to create tailored lending markets, unlike broad money markets. If the proposal moves forward, it could offer yield and borrowing opportunities for Frax users. However, the market is not live yet, and details regarding liquidity amounts and risk parameters remain to be defined.
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