Frax Finance may buy large amounts of major cryptos to back its stablecoin

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ICYMI: Frax Finance may buy large amounts of major cryptos to back its stablecoin

DeFi protocol Frax is considering buying native tokens of blockchains that support its stablecoin.advertisement

It was always an idea that the project would consider other coins as collateral. The project’s documentation states that non-stable cryptocurrencies like ether and bitcoin could be added as collateral once the system becomes more robust. Yet only recent has this plan to establish another “stability fund” made of various crypto assets been discussed as an imminent possibility.

to create a stability fund that will back its related stablecoin Terra USD . But instead of buying only bitcoin as is the case with Terra, Frax intends to acquire the native assets of all blockchains where the stablecoin has been issued. The stablecoin may set aside a portion of the seigniorage — the protocol’s revenue generated from issuing FRAX — to accumulate the assets. The details have, however, yet to be finalized and may go through a governance vote first.

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And the trend continues

yts318 copytradorrrs

The feels

There is no 'backing' besides bitcoin - or gold, if you want the second best. The rest is loser talk.

Complete shitshow. $UST $USDN $FRAX

It’s happening.

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