Frax Finance to retire algorithmic backing amid stablecoin crackdown

. The market would dictate how much collateral was required for each FRAX to equal one United States dollar.

The hybrid model resulted in the stablecoin being 80% backed by crypto asset collateral and partially stabilized algorithmically. This was achieved by the minting and burning of its governance token, FXS, which has surged 12% over the past 12 hours. Frax is the industry’s fifth-largest stablecoin with a market capitalization of just over $1 billion.

Following the implementation of the proposal, the protocol will not mint any more FXS to increase the collateral ratio and token supply.It plans to retain protocol revenue to fund the increased collateral ratio, which includes pausing FXS buybacks.

We can finally rest easy knowing that we've achieved 98% consensus on something! 🙄

Metis(Vitalik s mother), Glimmer(Moonbeam) and Iota. Check it out.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Frax Finance Votes to Fully Collateralize Its $1 Billion StablecoinThe vote means a significant shift for fraxfinance, as it essentially eliminates the algorithmic element of keeping FRX’s price pegged to the dollar. The decision follows a horrible 2022 for algorithmic stablecoins. sndr_krisztian reports fraxfinance sndr_krisztian Just use USDC instead. FRAX is pointless. fraxfinance sndr_krisztian Algorithmic stables coins will probably never work anyway… in all honesty So probably a good think to have the collateral there, I understand those who want that fully decentralised part tho
Source: CoinDesk - 🏆 291. / 63 Read more »

Hope Finance exploit results in $2M stolen from users’ fundsA smart contract exploit sees $2 million stolen from Arbitrum-based algorithmic stablecoin project Hope Finance. Thats the “story”. lol Who knows what 2 believe in the dark shadows of tokenomics? Buyin $BTC is a sure and safe bet tho 👍🏼 OasisProtocol OasisNetwork_ES $ROSE Dimplesukere It won't continue forever, so act quickly and get in on this strategy that has already paid me five ether and counting.
Source: Cointelegraph - 🏆 562. / 51 Read more »

Largest Exit Scam on Arbitrum: Hope Finance Drained for $2MThis marks the largest exit scam on Arbitrum in 2023.
Source: Crypto_Potato - 🏆 568. / 51 Read more »

Carmoola: Car finance fintech raises $125 million in debt and equityCar financing fintech Carmoola just raised $125 million in a mix of debt and equity. Check out the 12-slide pitch deck it used to raise the fresh funds.
Source: BusinessInsider - 🏆 729. / 51 Read more »