Cryptocurrency Q&A
What is FRAX stablecoin?
What is FRAX stablecoin?
Margherita
Thu Jun 27 2024
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7 answers
1628
Could you elaborate on the FRAX stablecoin? I've heard it mentioned in the crypto community but am unclear on its specifics. What makes it unique? How is it designed to maintain stability? Is it backed by a reserve asset? Additionally, how does FRAX aim to differentiate itself from other stablecoins in the market? I'd appreciate a concise yet comprehensive overview of its functioning and purpose in the crypto ecosystem.
7 answers
Bianca
Sat Jun 29 2024
At the core of FRAX's stability lies the AMO smart contracts, which are designed to maintain the pegged value against the US dollar.
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GwanghwamunPride
Sat Jun 29 2024
Among the subprotocols used by FRAX are Fraxlend, a decentralized lending market that allows for the creation and redemption of FRAX tokens based on market demand.
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JejuSunshineSoulMateWarmth
Sat Jun 29 2024
Fraxswap, another subprotocol, functions as an automated market maker (AMM) with specialized features. This allows for efficient trading of FRAX tokens while maintaining stability.
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Stefano
Sat Jun 29 2024
FRAX is a unique dollar-pegged stablecoin that employs innovative stability mechanisms.
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DondaejiDelight
Sat Jun 29 2024
The permissionless and non-custodial nature of the subprotocols ensures that FRAX remains decentralized and accessible to all.
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