What is Frax Finance (FXS)? Pioneering project of Algorithmic stablecoin

Algorithmic Stablecoin is a stablecoin with stability based on the mechanism of elastic supply using an algorithm called Rebase. And Frax is one of the rare stablecoins that still works and holds a good Peg until now (the acronym for Price Earnings to Growth is an index used to compare P/E ratio and earnings growth rate. enter the EPS(G) of a token). Come with me to learn more about Frax Finance – The reason for Frax

What is Frax Finance (FXS)?

Frax Finance is the pioneer project in the model of algorithmic stablecoins that are partially reserved (Fractional Algorithmic). Frax Finance’s goal is to create a decentralized, stable, scalable and capital-efficient stablecoin. The system of the Frax Finance network consists of two tokens:

• Frax (FRAX Coin): is an algorithmic stablecoin that is partly collateral-backed and partly algorithmically stable in Frax Finance.
• Frax Shares (FXS Coin): is the governance and Utility token of the Frax Finance network. FXS Coin is accumulated with value from the unsecured FRAX Coin rate, fees and income generated from the protocols.

Highlights of Frax

FRAX is an algorithmic stablecoin that has price stability through collateralization of assets. Mortgage rates change hourly to the value of FRAX with a increment of 0.25%.

Currently, the assets used as collateral to create FRAX only have stablecoins such as USDT, USDC to  create stability for the protocol before allowing collateral with many other assets.

• FRAX is always created/redeemed with a value at $1.
• When FRAX is greater than $1, creating a benefit that encourages users to mint more FRAX.
• Conversely, when FRAX is less than $1, there is a benefit for redeeming FRAX.

The total value of FRAX generated (mining) is guaranteed to be equal to the sum of the value of the collateral at the collateral rate and the value of the FXS (the number of FXS to be burned). When FRAX is redeemed, the user will get back the collateral and FXS at the same value (this FXS is generated).

Roadmap

In March 2021, Frax released version V2 with many improvements related to AMO – using collateral to farm for profit.

Team

Sam Kazemian founder of Frax Finance. Previously, he was the co-founder of Everipedia, a for-profit wiki-based online encyclopedia.

Investor 

Frax Finance receives investment from many famous and reputable large funds such as:  Multicoin Capital,  Parafi, Mechanism,…

Partner

The project has two most prominent partners that can be mentioned:

• Olympus DAO: Allows Olympus DAO to accumulate liquidity for the OHM-FXS pair through bond sales.
• Ondo finance: Any project can deposit their tokens into Ondo to form a trading pair with FRAX. Frax will take 5% fee according to the liquidity.

Tokenomic

Token Use Cases

FXS token has the following functions:

• Is a project management token.
• Combine with collateral to mint FRAX.

FXS Token Basics

• Token Name: Frax Share
• Ticker: FXS
• Blockchain: Ethereum
• Token Standard: ERC-20, Bep-20, PRC-20, SPL
• Contract:
  • ERC-20: 0x3432b6a60d23ca0dfca7761b7ab56459d9c964d0
  • BEP-20: 0xe48a3d7d0bc88d552f730b62c006bc925eadb9ee
  • PRC-20: 0x1a3acf6d19267e2d3e7f898f42803e90c9219062
  • SPL: 6LX8BhMQ4Sy2otmAWj7Y5sKd9YTVVUgfMsBzT6B9W7ct
• Token type: Utility, Governance.
• Total Supply: 99,574,369 FXS
• Circulating Supply: 57,730,568 FXS

Token Allocation

• Liquidity Mining: 60%
• Team:20%
• Token Sale: 12%
• Treasury: 5%
• Advisors: 3%

Token Release Schedule

• Team: First 6 months of cliff, then pay for 12 months.
• Token Sale: Initial unlock 2%, then 5% pay in next 6 months, and 5% in 1 year.
• Advisors: Installment over 3 years.

Community

• Website: https://frax.finance/
• Twitter: https://twitter.com/fraxfinance
• Telegram: https://t.me/fraxfinance
• Medium: https://fraxfinancecommunity.medium.com/

Final thoughts

In a nutshell, Frax is a uniquely designed and oriented stablecoin. Over 62% of the FXS supply is released within just a few years. It is a completely decentralized protocol with onchain governance, also the first and only stablecoin to incorporate a fractional-algorithm hybrid design at the time of its launch in November 2020. Although until now Not yet strongly developed, but Frax Finance always has quite potential directions and promises to build an extremely strong ecosystem.

The above is all information that the  CryptoChill team  has researched about the  Frax Finance  project and is not investment advice. Hope this article will help you get the necessary information and give your personal opinion about the project.