I wanna highlight FRAX stablecoin, cuz it combines both the collateral part and algorithmical part together. This is new and stable. Firstly, about the collateral Frax finance distributes the funds between several AMOs. One AMO is investment strategy behind it, for instance, they invest in Compound cUSDC or vlCVX. It can be liquidity providing as Ethereum FraxSwap. For today combined AMO Reserves equal to $700m. Basically, they invest their collateral in super save projects as Compound. Secondly, the additional part is backed by mechanism that helpt to peg this stablecoin. The price changes due to different collateralization ratio (CR). If the FRAX >$1, the CR lowers so additional FRAX can be minted with less collateral, as a result, the supply will increase as an answer to increased demand. If FRAX <$1, the CR increases, hence, now users need more collateral to mint FRAX. As the amount of collateral increases the stability of system will return to the same level, because the users will buy this FRAX by providing less collateral. Show Less
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