Being a permissionless and open-source protocol, Frax is the leading fractional-algorithmic stablecoin system. It is implemented on the Ethereum blockchain at present time, but it has cross-chain implementation potential.
The Frax Share is focused on offering highly scalable, algorithmic, and decentralized money by replacing fixed-supply cryptocurrencies. Creators are promoting it as a unique design stablecoin. That’s because it is partially backed by the supply algorithmic and collateral.
The algorithmic and collateralized ratio relies upon Frax stablecoin’s market value. Suppose its value goes above $1, the collateral ratio decreases automatically. If its value goes below $1, the collateral ratio increases.
Frax Share is a community governed protocol with a highly decentralized and autonomous approach. There is no active management to manage this platform. Therefore, FXS token holders will play an important role in Frax Share’s progress.
What is the Frax Share FXS coin?
The Frax Share ecosystem is based on Uniswap and Chainlink oracles. It has two tokens, which are FRAX and FXS. FRAX is the stablecoin and FXS is governance token. The FXS token will be used for seigniorage revenue, fees, and excess collateral value.
The FRAX stablecoin is unique because stablecoins had three categories before its launch. Stablecoins were fiat collateralized, algorithmic with no collateral, and overcollateralized with crypto assets. The FRAX stablecoin is fractional-algorithmic and it’s a unique category of stablecoins.
There will be a dynamic supply of the FRAX stablecoin. It will change constantly to maintain its value at $1 due to this stablecoin’s monetary policy. Frax Share protocol has hard-capped FXS token to 100 million tokens. There is no token inflation schedule. Users can easily find Frax Share’s governance token for investment and protocol governance.
Being a non-stable ERC-20 coin, the FXS token can be used for the following purposes:
As mentioned several times before, this token provides the holder with governance rights. The coin holder can add and adjust collateral pools. It is in the hands of token holders to set up minting or redemption fees. Token holders can also alter the collateralization ratio refresh rate!
Investors can stake the FSX coin in several pools to gain rewards and interests.
Redeeming and minting
The user can mint the FSX coin to redeem FRAX stablecoin and burn it to mint the FRAX stablecoin.
If users deposit Uniswap LP coins to incentivized pairs, they will gain rewards. Those rewards are offered in the form of FXS coins.
FXS token distribution details
Frax Share has made it clear that there will be a total supply of 99,395,736 FXS coins. The current circulating supply is 11,214,067. 65% FXS coins are reserved for the Frax Share community and 35% coins are reserved for the development team and investors.
Common investors can take a share into tokens reserved for the community. The FXS coin is listed to major altcoin exchanges. You can swap it with other popular crypto assets to acquire many Frax Share coins.
How to buy the Frax Share FXS coin?
Frax Share has a completely decentralized platform with a governance on-chain. This protocol is offering the world’s first stablecoin based on the fractional-algorithmic design. It was launched in November 2020 and the FXS coin has already gained huge popularity on my crypto exchanges. You have an opportunity to buy this altcoin. So, follow the below-given steps to buy it now!
Join a crypto exchange
Numerous cryptocurrencies exchanges are facilitating fiat-to-crypto and crypto-to-crypto trading services. Pick a platform that accepts fiat currency if it is your first attempt to buy a cryptocurrency.
Most crypto exchanges have a similar registration procedure. Some popular platforms might ask you to complete the KYC before you start trading. So, fill the required details and then move forward to the next step.
You will need the money to buy cryptocurrencies. Bitcoin, Ethereum, Ripple, whatever you want, deposit funds to acquire it. The money deposit process is quite simple! Crypto exchange will offer you an option to choose the fiat currency and the deposit method.
Select suitable options and then select the amount of money you want to invest. It will take a while and the added fund will be visible in your account.
Buy Bitcoin or Ethereum
You want to buy the FXS coin, but here we are suggesting buying one of the most popular crypto-assets. You need BTC, ETH, or some other widely traded cryptocurrency to buy the Frax coin. You can’t find an exchange that offers a fiat-to-FXS trading service.
So, go to the exchange page and choose a cryptocurrency. Check the latest prices and select the number of coins you need. Complete the buying process and now you can acquire the FXS coin.
Buy the FXS coin
The FXS coin is available in many popular altcoin exchanges. Suppose your exchange has not listed this token yet, you should switch to another exchange. Join a renowned altcoin exchange with the best security features and transfer your cryptocurrencies to that exchange.
The entire process will take just a few minutes and then you have to open the crypto exchange page. Search for the FXS coin and you will find all the available pairs to swap. Choose a digital asset you own to exchange with the FXS coin. Select the number of coins and then proceed ahead to complete the trade.