noah_smith_researcher
Fri Jun 21 2024
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5 answers
1564
Is Frax fully backed?
As a keen observer of the cryptocurrency market, I've been following Frax's progress with keen interest. However, there's one aspect that remains a bit unclear to me. Could you elaborate on whether Frax is fully backed? I understand that Frax aims to be a stablecoin, but I'm curious about the extent of its collateralization. Specifically, I'd like to know if Frax holds enough reserves to back every single Frax token in circulation. If not, could you provide an estimate of the percentage of Frax that is actually collateralized? And if there's any risk associated with Frax not being fully backed, I'd appreciate your insights on that as well. Thank you for taking the time to address my question.
