Overview
dTRINITY draws its name and inspiration from Frax Finance’s “DeFi Trinity“ framework, structuring core protocol components around three distinct but vertically-integrated functions: stablecoin, credit, and liquidity.
Stablecoin
A non-volatile and fungible unit of account, backed 1:1 by collateral reserves. It is the protocol’s unified medium of exchange, credit, and liquidity.
Lending Markets
Decentralized lending and borrowing markets that allow onchain credit formation and yield opportunities for the stablecoin to emerge.
Liquidity Pools
Trading pairs for the stablecoin on decentralized exchanges (DEXs), enabling onchain swaps, price discovery, arbitrage, and secondary market liquidity.
“There is no difference between currency, credit, and liquidity. They are all different parts of the same thing.” ~Sam Kazemian, Co-founder of Frax Finance.
Natural Progression
Reserves collateralize stablecoins → Stablecoins facilitate credit and liquidity → Credit and liquidity accelerate money velocity → Money velocity increases yields → Yields attract more capital and reserves → Repeat ♾️
Horizontal Expansions
The vertically-integrated DeFi Trinity framework can also be expanded horizontally across multiple blockchain networks, enabling chain-native deployments that share a common system design.