[Company Watch] Dual Asset Backed Stablecoins — Would this work?

  • Frax can always be minted and redeemed from the system for $1 of value.
  • When Frax>1, anyone can mint Frax, with the combination of USDC and FXS based on a collateral ratio. For example, in a 98% collateral ratio, every FRAX minted requires $.98 of collateral and burning $.02 of FXS.
  • When Frax <1, anyone can redeem Frax, to receive a combination of USDC and FXS based on a collateral ratio. For example, in a 98% collateral ratio, every FRAX can be redeemed for $.98 of collateral and $.02 of minted FXS.
  • A minting/redemption fee of 0.45% is applied.
  • When Frax>1, the collateral ratio lowers by 0.25% per hour
  • When Frax<1, the collateral ratio increases by 0.25% per hour.

--

--

--

Zero risk and 20% return - risk neutralised cryptocurrency fund.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

BreederDAO $BREED Token Staking Announcement

Bitcoin uses the superior Ethereum blockchain platform

Tesla, Block, and Blockstream Announce Partnership to Mine Bitcoin With Solar Energy in Texas

DOVU Content Bounty Announcement!

Analysis of Parcel Sales on Decentraland

Blockchain, back to the future.

Liquidity has driven DeFi’s growth to date, so what’s the future outlook?

An analysis of the collapse of IRON on Polygon

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
The Serenity Fund

The Serenity Fund

Zero risk and 20% return - risk neutralised cryptocurrency fund.

More from Medium

[Weekly] Market Return on StableCoin-based Strategies(7 Mar 2022)

How to Hedge Yield Farming Risk with Perpetual Contracts

Delta-Neutral Yield Farming Portfolio Performance (1-May)

The DeFi Degenerate vs the Humble Yield Farmer