Frax Finance's stablecoin, frxUSD, is now live on the Euler Finance lending and borrowing platform. The integration launched with an initial $4 million in frxUSD supplied to the protocol, creating a new source of liquidity and utility for the asset.

The initial supply provides a foundation for borrowing activity, with the platform currently featuring low borrow rates for frxUSD. According to the announcement, Euler plans to introduce incentives for users in the near future, a common strategy to bootstrap liquidity and attract users to new markets.

This move signals Frax Finance's continued effort to embed its stablecoin across the decentralized finance (DeFi) ecosystem. By integrating with lending platforms like Euler, frxUSD gains a crucial use case, allowing holders to earn a yield on their assets and enabling traders to use it as collateral or for borrowing.