Cryptocurrency Q&A
How is FRAX pegged?
How is FRAX pegged?
CryptoWizard
Tue Oct 15 2024
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5 answers
680
I'm curious about the mechanism behind FRAX's pegging. How does it maintain its peg and what are the factors involved in this process? I would like to understand the technicalities and dynamics of FRAX's pegging system.
5 answers
ShadowFox
Thu Oct 17 2024
FRAX, a prominent cryptocurrency, is fundamentally supported by collateral stored securely on the blockchain. This on-chain backing ensures the integrity and stability of FRAX's value.
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Martino
Wed Oct 16 2024
BTCC, a leading cryptocurrency exchange, offers a wide range of services that cater to the diverse needs of the crypto community. Its services encompass spot trading, futures trading, and wallet solutions, among others.
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Alessandra
Wed Oct 16 2024
Smart contract protocols play a pivotal role in maintaining FRAX's pegged value to other assets, specifically maintaining a 1 to 1 ratio. These protocols automatically adjust the amount of FRAX in circulation based on the value of the backing assets.
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Lucia
Wed Oct 16 2024
The assets used to collateralize FRAX are diverse, encompassing various cryptocurrencies that contribute to its stability. This diversification helps mitigate risks associated with relying solely on one asset type.
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Lucia
Wed Oct 16 2024
Among the cryptocurrencies used as collateral for FRAX, stablecoins occupy a prominent position. Stablecoins, known for their relatively stable value, are a vital component in maintaining FRAX's pegged status.
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