Stablecoins , which are a real savior in trading transactions and during periods when the market is volatile, have always been one of the most popular and most used digital assets. The Frax protocol says it offers the world’s most innovative decentralized stablecoins and DeFi stablecoin infrastructure. Frax Share has the say in the management of stablecoins and infrastructure protocols included in such a protocol. “What is FXS coin?” We will start this content, where we will seek the answer to the question, by talking about what the Frax protocol is in order to understand the subject more clearly.
What is Frax Protocol?
The Frax protocol underlines that it is a self-sufficient DeFi economy that uses stablecoins as currency. At the same time, it went down in the history of the cryptocurrency world as the first fractional algorithmic stablecoin protocol. Fractional algorithmic stablecoin is an approach where part of its offering is backed by collateral, while the other part is based on algorithms.
This protocol offers an ecosystem that includes 3 stablecoins and 3 infrastructures. Having brief information about these helps you get to know the Frax ecosystem more closely.
Stablecoins in Frax Protocol
FRAX: A crypto-collateralized stablecoin that is pegged to the US dollar, is a highly scalable, trustworthy and ideological on-chain currency.
FPI: Frax Price Index constitutes its own unit of account, separate from any fiat currency. It is the first stablecoin pegged to a Consumer Price Index (CPI). It is fully supported and insured.
frxETH: Frax Ether (frxETH & sfrxETH) is a pegged ETH stablecoin and LST system used as a replacement for WETH in smart contracts. It was created to benefit from the Frax ecosystem and is fully crypto-backed.
Infrastructures in Frax Protocol
The Frax ecosystem has various sub-protocols in which its stablecoins are integrated.
Fraxswap: The first AMM with a time-weighted average market maker (TWAMM) to reliably execute large trades over long periods of time. It is completely permissionless and based on constant multiplication variation (xy=k).
Fraxland: A trustless, permissionless and non-custodial lending platform that offers lending markets between any two ERC20 tokens. Each trading pair is an isolated market that allows anyone to participate in lending and borrowing activities.
Fraxferry: A permissionless, non-custodial and secure method to transfer locally generated Frax protocol tokens across multiple blockchains without the need for bridges or third-party applications.
What is the Frax Share Project and What Does It Do?
The Frax Shares project is related to the FXS token, which is at the center of the Frax ecosystem and where all usage and governance rights of the system are focused. In the Frax ecosystem, FXS token is used in staking transactions. In addition, it has a role contributing to the governance of the system. This token was created in a volatile structure. This shows that it is not like other stablecoins in the protocol. In this context, it is also considered a utility token .
The Frax Share project has the goal of creating a trustworthy currency and focuses on achieving this with a Bitcoin-like approach. It remains distant from active management. For this reason, it attaches importance to keeping the parameters that its community can actively manage as limited as possible. At this point, among the parameters managed through FXS; These include adding/adjusting collateral pools, adjusting various fees (for example, minting or cashing fees), and updating the collateral rate.
While the FXS supply is initially slated to be 100 million tokens, the amount in circulation is likely to become deflationary as FRAX is minted at higher algorithmic rates. The protocol design ensures that the supply of FXS takes on a heavily deflationary form as demand for FRAX increases.
If the market value of FXS increases, the system’s ability to keep FRAX stable also improves. Therefore, the priority in the Frax protocol is; It is to provide maximum value to the FXS token while maintaining FRAX as a stable currency.
What are the Advantages of FXS Coin?
Frax Share coin benefits contribute to the strengthening of the Frax Shares ecosystem and the sustainability of FRAX, a stable cryptocurrency. These advantages of the Frax Share project are as follows.
- Governance Right: FXS is the governance token of the Frax ecosystem. In this way, it provides those who have it with the right to vote in all important decisions to be taken in the protocol. Thus, participation and contribution to the development of the protocol can be ensured.
- Usage Flexibility: FXS serves as a usage token for all services and functions in the Frax protocol. This means FXS can gain value in different use cases.
- Market Capitalization Potential: Market value of FXS is calculated from the future net value of treasury proceeds on the Frax protocol, cash flow from mintages and redemption fees, and the use of unused collateral. This could reveal growth potential for FXS.
- Deflationary Measures: The protocol design ensures that the FXS supply is largely deflationary. This means that as demand for FRAX increases, the supply of FXS may decrease.
- Long-Term Opportunities: FXS holders can create FXS tokens by locking their holdings. This means they get incentives and governance rights. Thus, this means additional opportunities for long-term holding of the token and participation in governance processes in the protocol.
Who is the Founder of FXS Token?
The Frax protocol was created by Sam Kazemian in 2019. Sam Kazemian is known as the first person to come up with the idea of fractional algorithmic stablecoins. In addition to Kazemian, the founding team of the project includes Travis Moore and Jason Huan . Considered in this context, these names are also considered the founders of Frax Share coin.
Which Country Is FXS Token?
The headquarters of the Frax protocol appears to be in the Cayman Islands, an archipelagic country in the Caribbean Sea. In addition, Sam Kazemian, the main founder of the project, is an American of Iranian origin. Other co-founders are also located in the USA.
Buy FXS Token from ICRYPEX
As the world of crypto money expands day by day, investors are looking for different alternatives for crypto money. One of the notable names among these alternatives is Frax Share coin. At this point, ICRYPEX appears as a reliable address for those who want to buy and sell FXS . You can carry out FXS trading transactions within seconds with ICRYPEX’s Easy Buy and Sell feature or by using order types thanks to the Pro Buy and Sell feature.
