Frax Finance Votes to Fully Collateralize Its 1 Billion Stablecoin
Key Points: Following a vote on Wednesday, Frax Finance, a community of decentralized financial systems with nearly $2 billion in total value, decided to fully collateralize Frax’s native stablecoin frax, (FRX).
Frax Finance is managed by Frax Finance through community suggestions and votes.
Sam Kazemian, cofounder of Frax Finance, said in a Telegram group conversation that he preferred to boost collateral because it was the “safest design.”
A vote was taken on Wednesday by Frax Finance, a community of decentralized financial systems with nearly $2 billion in total value, to fully collateralize the protocol’s native stablecoin frax. It is partially algorithmically stable and 80% backed crypto asset collateral. The protocol’s governance token FXS was burned and mint. The proposal states that the protocol’s issuer, Frax Finance, is partially algorithmically stabilized and 80% backed by crypto asset collateral. It also burns and mints the protocol’s governance token FXS. It suggests that the protocol income be kept and that frxETH (the protocol’s liquidether staking counterpart) can be purchased to maintain reserves. The contagion that followed the most high-profile decline, TerraUSD’s death spiral in May, destroyed a number of digital asset enterprises.DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comAnnieCoincu NewsTags: Frax FinanceFRXfrxETHStablecoin