What is Frax Share (FXS)? All information about Frax Share

• About Frax Share (FXS)
• What is Frax Share (FXS)?
• Frax Share (FXS) Key Features
• What makes Frax Share (FXS) different?
• Frax Share developers, investors and partners
• Frax Share project development roadmap
• About FXS token
• What are FXS tokens used for?
• FXS . Token Basics
• FXS Token Allocation Rate
• Token payment schedule
• The most prestigious place to buy, sell and store FXS tokens today
• Frax Share (FXS) related questions
• summary

Algorithmic stablecoins are a hot topic of discussion in the online community, especially after the fall of Terra's Stablecoin UST. So what's different about Frax Share's Frax Share Fractional Algorithm Stablecoin? Is FXS token really safe and potential? Let's learn with TraderH4 about the Frax Share project and the FXS token in the article below!

About Frax Share (FXS)

Before diving into the details of the FXS token, let's explore the Frax Share project overview. 

What is Frax Share (FXS)?

Frax Share (FRAX) is the world's first launched fractional stablecoin protocol. Frax Share is an open source code built on the Ethereum blockchain platform. Many projects on the market have poor scalability, not really decentralized, and limited supply (e.g. Bitcoin). So, Frax Share was born to solve these problems and optimize the Stablecoin projects present in the market. 

Frax Share (FXS) Key Features

 Frax Share has some important and outstanding features such as Fractional Algorithmic, Decentralized & Governance minimized, Buybacks & Recollateralization.

Fractional Algorithmic (FRAX)

• Fractional Algorithmic` is an algorithmic stablecoin with a supply backed by collateral and an algorithm (rest). In it, the collateral rate and the algorithm will depend on the price movement of the Stablecoin in the market. Specifically, if the FRAX Stablecoin is trading above $1, the protocol will reduce the collateralization rate and vice versa. This mechanism is relatively similar to how Terra's UST and LUNA once worked. 
• However, the difference is that the assets used as collateral are the two market leaders of Stablecoins USDT and USDC, before adding other assets. Before the appearance of FRAX - Frax Share's Stablecoin, Stablecoins were divided into 3 types: Mortgage by fiat, secured by crypto, and absolutely no collateral. FRAX is the first Stablecoin with the ability to self-categorize. 

Decentralized & Governance minimized

Frax Share is managed by an automated access algorithm without direct participation thanks to the following components: 

• Oracles on-chain: Frax Share v1 uses Uniswap 's Oracles (ETH, USDT, USDC time-average price) and Chainlink (USD price).
• Dual Token: Frax Share takes a completely different approach from all the rest of the Algorithmic stablecoins on the market with a model of 2 tokens that complement each other. Naturally, if FRAX is more stable, the supply of FXS tokens will decrease (price may increase), and when FRAX decreases in value, the supply of FXS tokens will increase (price may decrease).
• Swap: Frax Share uses principles from AMMs like Uniswap to create mechanisms for price discovery on Swap and real-time stabilization through arbitrage.
• Crypto Native CPI: Frax Share is looking to reconstruct the original Crypto Price Index (CPI) over the Frax Price Index (FPI). FPI is regulated by holders of FXS tokens and tokens of other protocols.
• Liquidity & Staking: Users can get FXS bonus tokens by depositing tokens into incentivized pools on Uniswap.

Buybacks & Recollateralization

Frax Share uses two special swap features, Buybacks and Recollateralization, to guarantee the value of the collateral. The amount of collateral will often be redundant and will add value to FXS token holders. 

What makes Frax Share (FXS) different?

Among the outstanding features of Frax Share, this protocol has two differences. First, it is the Dual token mechanism that maintains the stability of the FRAX Stablecoin. In addition, the design of the platform is geared towards actively promoting members in the protocol community. It is known that Frax Share has more than 60% of the utility token supply (FXS) issued to bring profit to Farmers and Liquidity Providers.

Frax Share developers, investors and partners

Frax Protocol is the brainchild of Sam Kazemian, an American software developer. Sam is the one who came up with the first idea of ​​​​a Fractional Stablecoin in 2019. In addition, there are 2 other founders, Travis Moore and Jason Huan and Stephen Moore. 

• Sam Kazemian is the creator of the idea and is also a particularly important person to create the Frax Share protocol. He is a well-known software developer in the technology field. Specifically, Sam is also known for co-founding a Wiki-based online encyclopedia platform, Everipedia in 2014. The idea of ​​stablecoin FRAX came from the explosion of this currency in the market, but without any combination of algorithmic and collateralized monetary policy. In addition, projects that applied purely algorithmic monetary policy failed or were shut down.

• Stephen Moore is a well-known figure, once a senior economic adviser to former US President Donald Trump. 
• In addition, the Frax Share project also has the participation of a group of engineers, notably Jason Huan and Travis Moore.

Frax Share project development roadmap

Although Frax Share's FRAX is expected to become a bright star in the stablecoin village in the cryptocurrency market. However, the specific information about the development roadmap of the project is still not too much. 

• In March 2021, the Frax protocol released its V2 version with many improvements related to AMO - using collateral to farm for profit. 
• Later, Frax Share also added veFXS mechanism in this version. 

About FXS token

The section on TraderH4 shared a lot about the project and Stablecoin FRAX. Below, we will learn more about the protocol's FXS token. 

What are FXS tokens used for?

FXS is the native token of the Frax Share protocol. This token is used in the following cases: 

• Governance: FXS token holders are entitled to add or adjust collateral pools, customize mining/repurchase fees, and change the refresh rate of the collateral rate.
• Staking: FXS is used to staking into different pools to earn more profits, with an attractive APY level.
• Minting & Redeeming: FXS tokens will be burned when minting FRAX and minted when redeeming FRAX. This mechanism is quite similar to Terra and Tron. 
• Rewards: FXS will be used to reward users who deposit tokens into incentivized currency pairs on Uniswap LP.

FXS . Token Basics

• Token name: Frax Share token
• Symbol: FXS
• Blockchain: Ethereum
• Standard token: ERC-20
• Contract: 0x3432b6a60d23ca0dfca7761b7ab56459d9c964d0
• Type: Governance token
• Total Supply: 99,681,794 FXS
• Circulating Supply: 16,209.404.70 FXS

FXS Token Allocation Rate

With a total supply of nearly 100 million FXS tokens, the project plans to allocate FXS tokens proportionally as follows: 

• Liquidity Mining: 60%
• Team: 20%
• Token Sale: 12%
• Treasury: 5%
• Advisors: 3%

Token payment schedule

The 5 groups of subjects allocated with FXS tokens will have a specific token payment schedule as follows: 

• Liquidity Mining: In the first year, up to 60% of FXS will be allocated to the market. This allocation will be determined by the mortgage rate, if it reaches 100% 12,000,000 FXS will be issued. If the mortgage rate is gradually reduced to 0%, the amount of FXS issued will be 3 times (36,000,000)
• Treasury: 5% of FXS is used as a reserve fund for the purpose of funding activities related to the development of the protocol.
• Team, Investors & Private Sale: 20% for development team with 12 month payment period and 6 months initial lock. 3% goes to partner advisors who contribute early to the protocol with a pay period of 36 months. The remaining 12% is sold through Private Sale. In particular, 2% will be unlocked when the protocol works, 5% will be paid within the next 6 months and the remaining 5% will be paid within 1 year.

The most prestigious place to buy, sell and store FXS tokens today

FXS tokens are listed and supported for trading on many famous exchanges such as Binance, Gate.io, KuCoin, Kraken, Uniswap V2… The currency pairs being traded with FXS are also quite diverse such as FXS/USD, FXS/EUR , FXS/USDT…

FXS is a token that runs on the Ethereum platform, ERC-20 standard. Therefore, you can store this token on wallets such as: Metamask, Trust Wallet, MyEtherWallet, Coin98 Wallet, imToken, hardware wallets (Ledger, Trezor)...

Frax Share (FXS) related questions

These are common questions related to the Frax Share project. If you have the same question, you can refer to the answers below. 

• How to use the features on Frax Share?

First, you need to visit the address: https://app.frax.finance/ . After that, you must connect to your hosted wallet to be able to use the features on Frax Share. 

• Which wallets can Frax Share be linked to?

While you can store FXS tokens on multiple wallets, Frax Share can only be linked to Metamask and WalletConnect wallets.

• What blockchain networks are there on Frax Share?

In addition to the main network, which is Ethereum, Frax Share also links with other networks such as BSC, Avalanche, Fantom, Polygon, Solana, etc.

• Where can I follow the Frax Share project?

This is a channel dedicated to monitoring and updating the latest information about the Frax Share project. 

Website | Twitter | Telegram | Discord 

summary

Frax Protocol is a Frax Algorithm Stablecoin that is oriented and quite nicely designed. This is also the first and only stablecoin that combines fractional-algorithm hybrid design, which is highly appreciated by industry experts. However, Terra's crash with Stablecoin UST and token LUNA, is also a wake-up call for similar projects. Therefore, to be safe as well as improve investment efficiency, you need to analyze and research thoroughly before making a trading decision.