Frax Share Price (FXS)

Frax Share (FXS) Price Now

Frax Share price today is $4.46 with a 24-hour trading volume of $11,949,801. FXS price is down -1.14% in the last 24 hours. It has a circulating supply of 79.06Mil FXS tokens and a max supply of 100Mil.
In order to search for real-time and historical information about Frax Share (FXS) blockchain, including data related to blocks, transactions, addresses, and more, you may use Frax Share (FXS) block explorers. Here are some of the most popular and useful Frax Share (FXS) blockchain explorers out there:

• etherscan.io
• ethplorer.io

What Is Frax Share(FXS)?

The Frax Share token (FXS) is the non-stable, utility token in the protocol. It is meant to be volatile and hold rights to governance and all utility of the system. It is important to note that the team takes a highly governance-minimized approach to designing trustless money in the same ethos as Bitcoin. 

What Are the Features of Frax Share(FXS)?

The FXS token has the potential of upside utility and downside utility of the system, where the delta changes in value are always stabilized away from the FRAX token itself. FXS supply is initially set to 100 million tokens at genesis, but the amount in circulation will likely be deflationary as FRAX is minted at higher algorithmic ratios. The design of the protocol is such that FXS would be largely deflationary in supply as long as FRAX demand grows.

The FXS token’s market capitalization should be calculated as the future expected net value creation from seigniorage of FRAX tokens in perpetuity, the cash flow from minting and redemption fees, and utilization of unused collateral. Additionally, as the market cap of FXS increases, so does the system’s ability to keep FRAX stable. Thus, the priority in the design is to accrue maximal value to the FXS token while maintaining FRAX as a stable currency. As Robert Sam’s described in the original Seigniorage Shares whitepaper: "Share tokens are like the asset side of a central bank’s balance sheet. The market capitalisation of shares at any point in time fixes the upper limit on how much the coin supply can be reduced." Likewise, the Frax protocol takes inspiration from Sams’ proposal as Frax is a hybrid (fractional) seigniorage shares model.

Who Are the Founders of Frax Share(FXS)?

Frax's founders are Sam Kazemian​ (Co-Founder & CEO) and Jason Huan (Co-Founder). Sam Hamidi-Kazemian is an Iranian-American software programmer. He founded Everipedia with Theodor Forselius in December 2014 and later served as its President. In 2019, he began development of Frax, a fractional stablecoin cryptocurrency.

How Does Frax Share(FXS) Work?

Frax uses ideas from Uniswap and AMMs to build a novel hybrid stablecoin design never seen before. In a Uniswap pool, the ratio of asset A and B has to be proportional due to the constant product function. The LP token is just a pro rata claim on the pool + fees so it is usually increasing in value (if fees higher than impermanent loss) or loses value (if impermanent loss greater than fees). The LP token is just passive claims on the pool.

Frax takes that idea and turns it over to design a unique stablecoin. The LP token is the stablecoin, FRAX. It is the object of stabilization and always mintable/redeemable for $1 worth of collateral and the governance (FXS) token at the collateral ratio. This ratio of the two assets (collateral and FXS) dynamically changes based on the price of the stablecoin. If the stablecoin price is dropping, then the protocol tips the ratio in favor of collateral and less in the FXS token to regain confidence in FRAX. An arbitrage opportunity arises for people wanting to put in collateral into the pool at the new ratio for discounted FXS which the protocol mints for this "recollateralization swap." This recollateralizes the protocol to the new, higher collateral ratio.

If FRAX is over $1, then the protocol tips the collateral ratio to the FXS token to measure the market's confidence in more FRAX supply being stabilized algorithmically. As FRAX becomes more algorithmic, the excess collateral can go back to FXS holders through a buyback shares function that anyone can call to burn their FXS tokens for an equal value of excess collateral. The "buyback swap" function always keeps value accruing to the governance token any time there is excess fees/collateral/value in the system.

Where Can You Buy Frax Share(FXS)?

Investing in Frax Share can seem complicated, but it is much easier when you buy Frax Share through cryptocurrency exchange. Signing up for a cryptocurrency exchange will allow you to buy, sell, and hold Frax Share — both for fiat money and other cryptocurrencies. Some of the most popular Frax Share cryptocurrency exchange are:

• Binance
• gate.io
• MEXC Global
• Hoo
• CoinBene

What is Frax Share (FXS) Contracts address?

• Ethereum: 0x3432b6a60d23ca0dfca7761b7ab56459d9c964d0