Frax USD FRXUSD Price

What is Frax USD (FRXUSD)?

Frax USD $FRXUSD is a fully-collateralized and fiat-redeemable stablecoin issued by the Frax Finance Protocol. It is designed with a hybrid model that integrates governance-approved enshrined custodians for minting and redeeming the stablecoin, as well as on-chain mechanisms developed by the Frax Finance Protocol. This dual approach ensures both stability and flexibility, making $FRXUSD a reliable option for users.

Enshrined custodians are real-world entities that play a crucial role in minting and redeeming $FRXUSD on a 1-to-1 basis with $1.00 of cash-equivalent reserves. These custodians can mint $FRXUSD for provable reserves they hold or burn the stablecoin in exchange for releasing these reserves. With governance oversight, new enshrined custodians can be added, and caps on their minting capabilities can be adjusted.

Key Features

Hybrid Model: Combines real-world custodian entities with on-chain mechanisms, providing a balance between decentralized operations and institutional-grade backing.

Transparency: Governance proposals oversee the addition of custodians and assets, ensuring community-driven decisions.

Permissionless Functionality: While enshrined custodians must comply with internal and regulatory requirements, $FRXUSD remains accessible to any user interacting with the custodian contracts.

Enshrined Custodians

Enshrined custodians are authorized to mint or burn $FRXUSD based on the reserves they hold. For example, a custodian may mint one $FRXUSD token for every $1.00 of cash-equivalent reserves in their control. When these tokens are burned, the corresponding reserve is released.

Custodian governance involves deploying specific contracts (e.g., frxUSDCustodian contracts) tied to the minting cap and the type of asset held. Users can interact with these contracts freely, although specific reserve tokens may have additional requirements like whitelists.

Added Custodians

Custodian assets are added through Frax governance proposals. Some examples include:

Securitize Markets, LLC: Custodies BUIDL assets under governance proposal FIP-418.

Superstate Inc.: Custodies USCC and USTB assets under governance proposals FIP-420 and FIP-421, respectively.

These assets enable $FRXUSD to maintain its fiat-redeemable nature, ensuring that as long as collateral tokens exist within custodian contracts, users can redeem them on demand.

Use Cases

Fiat-Backed Stability: Ideal for users looking for a stable digital asset fully backed by cash-equivalent reserves.

Institutional Integration: The ability to onboard real-world entities as enshrined custodians makes $FRXUSD suitable for enterprises and financial institutions.

Permissionless Access: Provides a decentralized solution for individuals, even as custodian entities operate within regulatory frameworks.

Conclusion

Frax USD $FRXUSD represents a significant advancement in the stablecoin space, combining the reliability of fiat-backed reserves with the flexibility and transparency of decentralized finance. By leveraging its hybrid model of enshrined custodians and on-chain mechanisms, Frax USD $FRXUSD ensures both stability and accessibility for a wide range of users. With its robust governance process and focus on maintaining a fully-collateralized and redeemable structure, Frax USD $FRXUSD stands out as a dependable option for individuals and institutions alike in the rapidly evolving blockchain ecosystem.

What is unique about Frax USD (FRXUSD)?

Frax USD $FRXUSD uniquely combines fiat-redeemable enshrined custodians with decentralized on-chain mechanisms for stability.

Who are the founders of Frax USD (FRXUSD)?

The founders of Frax USD are anonymous.

Where can I buy Frax USD (FRXUSD)?

 Curve (Ethereum), THENA