Cryptocurrency Q&A
What is FRAX crypto?
What is FRAX crypto?
Sara
Wed Jun 26 2024
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7 answers
1501
Could you please elaborate on FRAX crypto? I've heard it mentioned in recent cryptocurrency discussions but am still unclear about its specifics. What is the purpose of FRAX and how does it differ from other cryptocurrencies? Is it a stablecoin? If so, what mechanism does it employ to maintain its peg to a fiat currency? Additionally, how does FRAX's market capitalization and trading volume compare to other leading cryptocurrencies? I'm interested in understanding its potential use cases and the risks associated with investing in FRAX.
7 answers
SakuraPetal
Fri Jun 28 2024
Alongside AMO smart contracts, FRAX employs permissionless, non-custodial subprotocols to further enhance its stability.
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CherryBlossomGrace
Fri Jun 28 2024
One of these subprotocols is Fraxlend, a decentralized lending market that allows users to borrow and lend FRAX tokens in a trustless manner.
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Sara
Fri Jun 28 2024
FRAX is a unique dollar-pegged stablecoin that incorporates innovative technology to maintain its stability.
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BonsaiGrace
Fri Jun 28 2024
Fraxlend's decentralized nature ensures that no single entity controls the lending process, thus promoting transparency and fairness.
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EthereumElite
Fri Jun 28 2024
The other subprotocol used by FRAX is Fraxswap, an automated market maker (AMM) with specialized features tailored for FRAX.
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