Frax Share (FXS)
What Is the Frax Protocol (FRAX)?
The Frax Protocol is the first fractional-algorithmic stablecoin system. Frax is open-source, permissionless, and entirely on-chain – currently implemented on Ethereum (with possible cross chain implementations in the future). The end goal of the Frax protocol is to provide a highly scalable, decentralized, algorithmic money in place of fixed-supply digital assets like BTC. The protocol incorporates the following concepts: Fractional-Algorithmic – Frax is a unique stablecoin with parts of its supply backed by collateral and parts of the supply algorithmic. The ratio of collateralized and algorithmic depends on the market's pricing of the FRAX stablecoin. If FRAX is trading at above $1, the protocol decreases the collateral ratio. If FRAX is trading at under $1, the protocol increases the collateral ratio. Decentralized & Governance-minimized – Community governed and emphasizing a highly autonomous, algorithmic approach with no active management. Fully on-chain oracles – Frax v1 uses Uniswap (ETH, USDT, USDC time-weighted average prices) and Chainlink (USD price) oracles. Two Tokens – FRAX is the stablecoin targeting a tight band around $1/coin. Frax Shares (FXS) is the governance token which accrues fees, seigniorage revenue, and excess collateral value. Before Frax, stablecoins were divided into three different categories: fiat collateralized, overcollateralized with cryptocurrency, and algorithmic with no collateral. Frax is the first kind of decentralized stablecoin to classify itself as fractional-algorithmic ushering in the 4th and most unique category.
How Many FRAX and FXS Coins Are There in Circulation?
The supply of the FRAX stablecoin is dynamic and always changing to keep the price at $1 due to its fractional-algorithmic monetary policy. The supply of the Frax Shares (FXS) tokens are hard capped to 100 million tokens at genesis with no inflation schedule in the protocol. The FXS token is the governance token which accrues all value of new minted FRAX, fees, and excess collateral. FXS is an investment and governance asset while FRAX is the currency token.
What Makes Frax Unique?
The Frax Protocol is a community driven and unique design stablecoin. Over 60% of the supply of FXS is issued over a number of years to liquidity providers and yield farmers. It is an entirely decentralized protocol with governance onchain. It is also the first and only stablecoin to incorporate the fractional-algorithmic hybrid design at the time of its launch in November 2020.
Who Are the Founders of the Frax Protocol?
The Frax Protocol is the brainchild of American software developer Sam Kazemian who came up with the first idea of a fractional-algorithmic stablecoin in 2019. The founding team of Frax engineers includes Travis Moore and Jason Huan. Sam Kazemian originally devised the idea when he noticed that stablecoins were growing rapidly but none had any mixture of algorithmic monetary policy and collateralization. Projects that had purely algorithmic monetary policy had failed or shut down without any significant traction. Frax was designed as an answer to measure the market’s confidence in a partly algorithmic and partly collateralized stablecoin.
Where Can I Buy or Obtain FRAX and FXS?
FRAX, the stablecoin, is available on many major exchanges and DeFi platforms like Uniswap and DEXes. The Frax Shares (FXS) tokens are also available and as liquid as the stablecoin. Investors looking to purchase upside and governance rights to the world’s first fractional-algorithmic stablecoin should buy Frax Shares (FXS). Users who want stability by using the world’s only fractional-algorithmic stablecoin should purchase FRAX.
Check out our deep dive into Frax Finance. Learn more about Frax (FRAX) — which claims to be the world’s only fractional-algorithmic stablecoin. Find out more about Dai — an over-collateralized decentralized stablecoin. Read more about Algorithmic Stablecoins in CoinMarketCap's Glossary section. Get the latest crypto news and latest trading insights with CoinMarketCap Alexandria.
What tools does Nimbus offer for effortlessly monitoring Frax Share?
Nimbus provides a user-friendly tracking solution equipped with intuitive tools to monitor Frax Share effortlessly. These tools are specifically designed for user convenience, allowing individuals to stay seamlessly updated on the latest trends, prices, and information related to Frax Share. Users can also explore the world of cryptocurrency effortlessly while simultaneously tracking Frax Share prices. The platform also offers insights into profit and loss, providing a comprehensive experience without the complexity typically associated with monitoring cryptocurrencies.
How does Nimbus enable tracking Frax Share prices with profit and loss?
Nimbus facilitates the tracking of Frax Share prices with profit and loss through seamless integration with your crypto wallet for portfolio monitoring. By connecting with your crypto wallet, Nimbus provides a clear and comprehensive overview of various metrics, including profits, losses, revenue, expenses, return on investment (ROI), and other essential financial indicators. This integration ensures that users can analyze their cryptocurrency portfolio with precision, gaining valuable insights into their financial performance. With Nimbus, users can navigate the cryptocurrency landscape with a perfect blend of simplicity and sophistication, enhancing their ability to make informed investment decisions.
How does Nimbus analyze Frax Share, and what insights does it provide?
Certainly! Nimbus possesses a robust analysis tool that is adept at evaluating and interpreting Frax Share . The tool employs diverse strategies, including delving into metadata details, tracking marketplace data, and calculating performance metrics such as Return on Investment (ROI). Through these methodologies, Nimbus provides users with valuable insights into the composition and performance of their Frax Share. Users can gain a comprehensive understanding of their investment. The analysis tool ensures that users are equipped with the necessary information to navigate the cryptocurrency landscape with confidence and intelligence.
Top Institutions Holding Maximum Bitcoins in 2024
The post Top Institutions Holding Maximum Bitcoins in 2024 appeared first on Coinpedia Fintech News
Mar 02, 2024
Blockchain Report of February 2024: Dominance, Development, and Adoption Insights
The post Blockchain Report of February 2024: Dominance, Development, and Adoption Insights appeared first on Coinpedia Fintech News
Mar 02, 2024
What Went Wrong with Apple’s Project Titan – Unraveling the Mystery Behind the Disaster
In the annals of Apple’s storied history, the saga of Project Titan stands as a cautionary tale, a saga that mirrors the rise and fall of the legendary Titanic. What began as a daring venture into the realm of automotive innovation, promising to revolutionize transportation, ultimately ended in a resounding disaster. As executives announced the […]
Mar 02, 2024
Dencun in motion: Arbitrum gears up for latest upgrade
Arbitrum is on its way to implementing the Dencun upgrade as its TVL rises to the highest level in its history.
Mar 02, 2024
Whale Trading Patterns Indicate Shift to Shiba Inu Coin
Whale investors have been stirring the crypto waters with their recent trading activities, revealing a notable pivot towards Shiba Inu (SHIB) after divesting from PEPE (PEPE). A single whale transaction marked the sale of a colossal 1.97 trillion PEPE tokens valued at over $6 million.
Mar 02, 2024
Join us to Maximize your Returns & Minimize your Risk
Gain access to all exclusive data, insight that can make your investment more joy