Cryptocurrency Q&A
What is FRAX price index share?
What is FRAX price index share?
CloudlitWonder
Thu Jun 20 2024
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6 answers
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Could you please elaborate on the FRAX price index share? I'm curious to understand its significance in the cryptocurrency and finance landscape. Specifically, how does it function as a pricing mechanism? Is it a derivative or a separate asset class? Also, what factors influence its value and how does it correlate with other market indicators? Your insights into this relatively new concept would be greatly appreciated.
6 answers
EclipseRider
Sat Jun 22 2024
The Frax Price Index Share (FPIS) token serves as the governing instrument of the Frax Price Index (FPI) system.
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Martino
Sat Jun 22 2024
FPIS token holders thus have a vested interest in the success and stability of the Frax Price Index system.
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CryptoTamer
Sat Jun 22 2024
Holders of FPIS tokens are entitled to receive seigniorage generated by the protocol.
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EnchantedDreams
Sat Jun 22 2024
This seigniorage, or excess yield, is directed from the treasury specifically to FPIS holders.
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benjamin_rose_author
Sat Jun 22 2024
The mechanism is analogous to the FXS structure employed by Frax Finance.
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