Frax v1 leverages the Uniswap (ETH, USDT, USDC time-weighted average prices) and Chainlink (USD price) oracles, which are both fully on-chain.
Stablecoins were formerly categorized into three groups: fiat collateralized, cryptocurrency overcollateralized and computational with no security. Frax is the first decentralized stablecoin to identify as fractional-algorithmic, ushering in the fourth and most distinct category.
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Frax is a fractional-algorithmic stablecoin that has parts of its supply guaranteed by collateral and portions of its issuance that are algorithmic. The ratio of collateralized to algorithmic is determined by the FRAX stablecoin’s market price. The procedure reduces the collateral ratio if FRAX trades over $1. When FRAX trades for less than $1, the protocol raises the collateral ratio.
Decentralized and low-governance – Community-run, with a focus on a highly autonomous, algorithmic approach that requires no human administration.
Two Tokens – FRAX is a stablecoin with a price objective of $1 per coin. The governance token, Frax Shares (FXS), earns fees, seigniorage revenue, and excess collateral value.
The Frax Protocol is the first stablecoin system based on a fractional algorithm. Frax is a permissionless, open-source, and completely on-chain cryptocurrency that is presently deployed on Ethereum (with possible cross-chain implementations in the future). The Frax protocol’s ultimate objective is to create a highly scalable, decentralized, algorithmic money to replace fixed-supply digital assets such as Bitcoin. The following ideas are included in the protocol:
The Frax Protocol is the brainchild of Sam Kazemian, an American software developer who initially proposed the notion of a fractional-algorithmic stablecoin in 2019.
Travis Moore and Jason Huan are among the Frax engineers that founded the company. When Sam Kazemian discovered that stablecoins were rapidly rising in popularity, he realized that none of them had a combination of algorithmic monetary policy and collateralization. Projects with fully algorithmic monetary policy had failed or been abandoned without gaining momentum. Frax was created as a way to gauge market sentiment toward a partially algorithmic, partly collateralized stablecoin.
The Frax Protocol is a community-driven stablecoin with a one-of-a-kind architecture. Over 60% of the FXS supply is distributed to liquidity providers and yield growers over several years. It’s a completely decentralized system with on-chain governance. At the time of its inception in November 2020, it was also the first and only stablecoin to use a fractional-algorithmic hybrid architecture.
The stablecoin FRAX is accessible on a number of major exchanges and DeFi platforms such as Uniswap and DEXes. The Frax Shares (FXS) tokens, which are as liquid as the stablecoin, are also available. Frax Shares are for investors who want to own upside and governance rights in the world’s first fractional-algorithmic stablecoin (FXS). FRAX is a stablecoin for users who desire to use the world’s only fractional-algorithmic stablecoin.
Yes, in reality, Europe is one of the easiest countries to acquire cryptocurrency in general. There are also online banks where you can create an account and send funds to exchanges like Coinbase and Uphold.
Exchange inflows and outflows, technical and fundamental changes, the news cycle, and the overall economic climate are all variables that impact FRAX Share price and market cap.
FRAX Share Official website – https://frax.finance/#welcome
FRAX Share Twitter – https://twitter.com/fraxfinance
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