FRAX is a dollar-pegged stablecoin that uses “Algorithmic Market Operation” (AMO) smart contracts and permissionless, non-custodial subprotocols as stability mechanisms. The three main internal subprotocols used as stability mechanisms are Fraxlend, a decentralized lending market, Frax Bonds for peg stability, and Fraxswap, an automated market maker (AMM) with special features. The primary external locations for stability include Curve and Uniswap V3 pools. Additional subprotocols and AMOs can be added with governance allowing FRAX to incorporate future stability mechanisms seamlessly as they are discovered.
Why Frax Finance?
Hybrid Stability: Combines the best of both worlds—collateral and algorithmic stability—to create a more efficient and scalable stablecoin.
Scalability: As the protocol grows, it dynamically adjusts its collateral ratio, making it more capital-efficient compared to fully collateralized stablecoins.
Innovative Mechanisms: Frax’s unique design ensures that its price remains pegged to $1, even during high volatility, by automatically adjusting the collateral and algorithmic components.
Yield Opportunities: Stake FRAX or provide liquidity in various pools to earn attractive yields. With Frax, you’re not just holding a stablecoin; you’re putting your assets to work.
Strong Community: Frax has a rapidly growing community of supporters, developers, and investors who believe in a decentralized financial future.
Check them out: https://linktr.ee/fraxs_finance
- Twitter: https://x.com/fraxsfi
- Telegram: @fraxs_finance
Jump into Frax Finance today and be a part of the decentralized stablecoin revolution!
submitted by /u/noldukie
[link] [comments]
Join The SmashBotAI Telegram Community Now! Get trade alerts, smashable token trade ideas, and more!
https://t.me/smashbotcommunity
Start Trading Now:
SmashBotAI Telegram Bot
Claim Your $SMASH Airdrop Now!