I did addional research about Frax Finance. I found out that only 75% of Frax emissions are collateralized by stablecoins. Some of their collateral is just FRAX, because what they are doing is that they mint FRAX, provide it as liquidity to Curve pool, get LP tokens and then stake it on Convex, so I remove this part of FRAX from my research. As a final result the number is 75%. Remaining part consists of different tokens. This part includes all AMOs: lending, investor, main.

Frax has its own lending platform, where users can deposit their collateral: sfrxETH, gOHM, WBTC, etc., and then users can mint FRAX against it. The most popular collateral is sfrxETH. Users lent 42.31m FRAX and borrowed against it 31.25m FRAX.

Source for this information: https://facts.frax.finance/frax/balance-sheet

Frax (FRAX) is a cryptocurrency and operates on the Ethereum platform

Frax

I did addional research about Frax Finance. I found out that only 75% of Frax emissions are collateralized by stablecoins. Some of their collateral is just FRAX, because what they are doing is that they mint FRAX, provide it as liquidity to Curve pool, get LP tokens and then stake it on Convex, so I remove this part of FRAX from my research. As a final result the number is 75%. Remaining part consists of different tokens. This part includes all AMOs: lending, investor, main. 

Frax has its own lending platform, where users can deposit their collateral: sfrxETH, gOHM, WBTC, etc., and then users can mint FRAX against it. The most popular collateral is sfrxETH. Users lent 42.31m FRAX and borrowed against it 31.25m FRAX. 

Source for this information: https://facts.frax.finance/frax/balance-sheet

Martin Kruger

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.

Frax FRAX

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