Cryptocurrency Q&A
Is FRAX backed by USDC?
Is FRAX backed by USDC?
Valentino
Fri Jun 21 2024
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6 answers
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Could you elaborate on the relationship between FRAX and USDC? Is FRAX fully backed or partially backed by USDC? If so, what is the exact nature of this backing? Does it involve a direct pegging mechanism or some other form of collateralization? Understanding the intricacies of this relationship is crucial for investors and traders alike, as it can significantly impact the value and stability of FRAX. Could you provide a detailed explanation of how FRAX's backing by USDC works, if indeed there is such a relationship?
6 answers
Elena
Sun Jun 23 2024
FRAX represents a unique deviation from the conventional stablecoin framework.
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OliviaTaylor
Sat Jun 22 2024
When users deposit their crypto assets into the FRAX system, the issuing company provides them with an equivalent amount of FRAX tokens.
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Valentina
Sat Jun 22 2024
BTCC, a UK-based cryptocurrency exchange, offers a comprehensive range of services to its clients.
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Alessandra
Sat Jun 22 2024
Unlike many other stablecoins, FRAX does not rely on cash or cash equivalents for its backing.
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CryptoAlly
Sat Jun 22 2024
Instead, FRAX leverages other cryptocurrencies, most notably USDC, as its primary collateral.
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