DeFi Trinity Framework
dTRINITY draws its name and inspiration from Frax’s DeFi Trinity framework, structuring core protocol components around 3 distinct but vertically-integrated functions: stablecoin, liquidity, and credit.
Stablecoin
A non-volatile and fungible unit of account, backed by collateral reserves. It serves as the protocol’s unified medium of exchange, liquidity, and credit.
Liquidity
Trading pairs and DEX liquidity pools for the stablecoin, enabling onchain swaps, price discovery, arbitrage, and opportunities for LPs (liquidity providers).
Credit
Decentralized lending and borrowing markets for the stablecoin, enabling onchain credit and money supply expansion to take place.
Natural Progression
Reserves collateralize stablecoins → Stablecoins facilitate liquidity and credit → Liquidity and credit accelerate velocity → Velocity enhances fees and yield → Yield attracts new capital and reserves into the system → Repeat ♾️
Horizontal Expansions
The vertically-integrated DeFi Trinity framework can also be expanded horizontally across multiple blockchain ecosystems, enabling chain-native deployments that share a common monetary and credit system design.
“There’ is no difference between currency, liquidity, and lending. They’re all different parts of the same thing.”
~Sam Kazemian, Frax’s Co-founder.