FRAX - Stablecoin Summit Protocol Highlight
Greetings FRAX & Shade community,
In this highlight series, Shade Protocol will cover our partner projects for the upcoming Cosmos stablecoin summit in December - giving viewers the opportunity to learn about these protocols in advance.
The following is a list of protocols and speakers featured via the Cosmos Stablecoin Summit:
- FRAX
- Comdex
- Agoric
- Shade Protocol
- Duality
- Kujira
- Axelar
- Jack Zampolin
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FRAX - Fractionalized Stablecoin On Ethereum
The Frax protocol implements a two token system design: a stablecoin, FRAX, and a governance token, FXS. The two token system allows for FRAX to be backed by both collateral and an algorithm (burning and redeeming of FXS). FRAX is minted when collateral and FXS are deposited into the Frax protocol contract. [credit]
When FRAX is trading above its peg, the collateralization ratio is relaxed - allowing users to mint out FRAX using a combination of stablecoins + the governance token (FXS) as seen below.
When FRAX is trading below its peg, the collateralization ratio is tightened - allowing users to burn FRAX in order to redeem for underlying stablecoins. This elastic system allows for FRAX to gradually react to changes in demand for the underlying stablecoin.
Haseeb Qureshi
FRAX And Cosmos DeFi
Axelar (a stable summit partner) is capable of bridging over ERC-20 tokens into the Cosmos such as FRAX.
FRAX will be readily available throughout the Cosmos, and will be accessible for trade on DEXs that choose to list FRAX. Shade Protocol plans to list FRAX on its recently announced (and soon to be launched stableswap) ShadeSwap.
FRAX Founder Highlight - Sam Kazemian
Sam Kazemian is a speaker at the December 20th stablecoin summit. Sam founded FRAX in early 2019, making it one of the oldest decentralized stablecoin projects in all of crypto. Sam is well renowned for his deep understanding of traditional banking models - FRAX is one of the most innovated automated versions of banking crypto has ever seen.
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Conclusion
Shade Protocol is an ambitious array of application-layer products focused on a simple end user experience that involves the incorporation of privacy by default. These interconnected privacy-preserving DeFi products built on Secret Network will change DeFi as we know it — empowering the next generation of value creation and exchange. Shade Protocol is launching Silk: a privacy-preserving collateralized, reflexive stablecoin built on Secret Network.
Without privacy, DeFi is incomplete. Traditional financial markets offer a degree of privacy for users, and as a result offer up greater protections in some capacity than existing DeFi markets. Shade Protocol will be the world’s first truly cohesive decentralized and privacy-preserving financial applications — ushering in a golden era for Web3. Shade Protocol will always push for privacy by default, privacy as an expectation, and privacy as the key to unlocking the full value of a decentralized future.
But we can’t do this without community. We need you to join our community and help make Silk and Shade Protocol a reality.
December 20th, 7:00 pm. UTC - Shade Protocol livestream on YouTube.
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