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Frax co-founders propose spending $20 million to buyback FXS token

Sam Kazemian and Travis Moore, co-founders of Frax Finance, have published a new governance proposal Wednesday for a $20 million buyback of the protocol’s Frax Shares (FXS) token. Frax Finance is a fractional algorithmic stablecoin protocol and its stable currency is called FRAX. The stablecoin maintains its US dollar peg via two mechanisms — partial collateral backing by USDC and an algorithm that trades FRAX and FXS. The proposal’s authors say the buyback is necessary to reverse the token’s price …

Frax Finance may buy large amounts of major cryptos to back its stablecoin

Frax, an algorithmic stablecoin protocol, is mulling the idea of buying billions of dollars’ worth of native tokens of major blockchains to use as reserve collateral for its stablecoin.  The stablecoin, called FRAX, maintains its dollar value by being partially collateralized by USDC, along with an algorithm that buys and sells FRAX with another token called Frax Shares (FXS). When the stablecoin was launched, it was collateralized fully by USDC, but as it expanded, it used the algorithmic elements to …