Frax protocol founder Sam Kazemian revealed in a podcast interview on Monday that the $FRAX, which is currently a partially algorithmic stablecoin, will be fully backed by the Federal Reserve Master Account in the future.
$FRAX is one of the market's few remaining algorithmic stablecoins, backed in part by the Frax protocol's native token $FXS and in part by $USDC. Due to widespread skepticism about algorithmic stablecoins, the algorithmic portion of $FRAX has been reduced to 8%.
A Fed Master Account refers to a bank account at one of the Federal Reserve’s 12 regional branches, known as a Master Account, which is a deposit directly with the Federal Reserve. When asked about the regulatory possibility, Sam responded that he was confident and this is the top priority for Frax this year.
Frax protocol has developed a suite of DeFi products including $FRAX stablecoin, $FPI - an inflation adjusted stabelcoin, Fraxlend - a lending protocol, Fraxswap- an AMM, Fraxferry - a cross-chain bridge, and frxETH - a liquid staking token for staked $ETH.
Stablecoins
DeFi
