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Frax Share (FXS) Price Upsurges 80 Percent in a Week

Frax Share (FXS) Price Upsurges 80 Percent in a Week

  • TFS Tokens reflect a user’s claim on deposited assets and may be redeemed at will.
  • The system uses two assets: the Frax (FRAX) stablecoin and the Frax Shares (FXS).

The crypto market is never dull. However, FXS, a governance token of a lesser-known fractional-algorithmic stablecoin protocol, Frax, has risen by 80% in a week.

According to CoinMarketCap, the token has earned almost twice as much as bitcoin has gained so far this month. Furthermore, the token price today is $12.87 USD with a 24-hour trading volume of $10,206,559 USD.

Frax, an Ethereum-based stablecoin, is partly collateralized by both assets and cryptographic techniques. The system uses two assets: the Frax (FRAX) stablecoin and the Frax Shares (FXS) governance and utility token.

FXS Linked to FRAX Demand

As collateral, a user may contribute USDC stablecoin and FXS tokens in quantities determined by the Frax collateral ratio (CR). For example, assuming a 50% collateral ratio, one FRAX may be obtained by contributing $0.50 USDC and $0.50 FXS. For each FRAX stablecoin delivered, the user gets $0.50 USDC and $0.50 FXS. So, investor demand for FXS is linked to FRAX demand.

Tokemak opened an FXS-specific token reactor where FXS holders may deposit coins and get TOKE or tFXS tokens in exchange. Moreover, TFS Tokens reflect a user’s claim on deposited assets and may be redeemed at will.

The current annual percentage rate on FXS deposits is 47%, according to Tokemac’s website. That beats bitcoin’s cash and carry arbitrage’s recent annualized return of 13%. (Buy spot and sell three-month futures). Moreover, the anticipation of Frax V3, which protocol creator Sam Kazemian compares to ETH 2.0, is Something that must be driving the FXS token higher.

The post has appeared first on thenewscrypto.com

Read more: https://thenewscrypto.com/frax-share-fxs-price-upsurges-almost-80-percent-in-a-week/

Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
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