Nicola
Thu Jun 27 2024
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6 answers
1092
What is frax collateral?
Could you elaborate on the concept of Frax collateral? I've heard it mentioned in relation to cryptocurrency but am still unsure of its precise definition and function. Specifically, I'm curious about what assets typically serve as Frax collateral, how it's used to maintain the stability of the Frax Fractional Algorithmic Stablecoin, and what role it plays in the overall Frax ecosystem. Additionally, I'd like to understand the risks and benefits associated with providing collateral for Frax and how it impacts the value of the stablecoin. Could you provide a concise yet comprehensive explanation of Frax collateral?
