I remember Sam talking about how everything will be developed

Question

Frax Finance

Entorg

I remember Sam talking about how everything will be developed

with the goal to accrue more and more value to FXS and now there's this FPIS token?

#cryptocurrency #english #frax

0

23.02.2022

9 ответов

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Sam Kazemian ¤⛓️¤

The short answer is: there is a bonding curve mechanism which FPIS accrues value to FXS proportional to how much FRAX is used as collateral for FPI. The more FRAX is backing FPI, the more FPIS holders get profits of FPI growth because the entire collateral is FRAX stablecoins so FPI increases market cap of FRAX & increases the collateral FXS holders control on the balance sheet. The less FRAX backing FPI then the more FPI profits go to FXS holders. We designed this so no matter what happens, whether FPI moves away from having FRAX as collateral and uses other exotic assets then more value accrues to FXS. If FPI uses FRAX as most of its collateral then FRAX market cap grows as a function of FPI demand so FPIS holders can get more of the profits above CPI. No matter what ends up backing FPI, FXS holders will benefit either through FRAX supply growth or the profits going more to FXS if FRAX is not backing FPI. It is a really elegant system. It took us a lot of time to design. This creates an FPIS token that can support the FPI peg without jeapordizing the dollar peg of FRAX & allowing people to speculate+invest in FPI growth if they think FPIS is undervalued. Wait for us to publish the docs for the full value accrual mechanism. 🙂

0

23.02.2022

Entorg Автор вопроса

Sam Kazemian ¤⛓️¤
The short answer is: there is a bonding curve mech...

thank you for taking the time to explain it in such an understandable way Sam 🙏

0

23.02.2022

Sam Kazemian ¤⛓️¤

Entorg
thank you for taking the time to explain it in suc...

Ya of course. No problem. You should be confident that we're building out everything in this ecosystem with a grand vision in mind with FXS the underlying token of it while also creating a very clear value proposition for FPI which we believe to be the first true successor to all dollar pegged stablecoins.

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23.02.2022

Marco 🌕

Sam Kazemian ¤⛓️¤
Ya of course. No problem. You should be confident ...

excited about it Sam! another decentralize yield bearing stablecoin, we need it!

0

23.02.2022

Edmond 💪👍😎 Dantes

Sam Kazemian ¤⛓️¤
The short answer is: there is a bonding curve mech...

Man you passed the game, this is next level material

0

23.02.2022