FXS
Reputation Ratings

FXS

Frax Share 5-10 years
Website https://frax.finance/#welcome
Browser
OTH RELPs
White Paper
Avg Price
-13.27%
1D

$ 6.676 USD

$ 6.676 USD

Market Cap

$ 690.576 million USD

$ 690.576m USD

24h trading volume

$ 83.095 million USD

$ 83.095m USD

7d Vol

$ 444.671 million USD

$ 444.671m USD

Circulating supply

77.502 million FXS

Related information

Issue Time

2020-11-27

Platform pertained to

--

Current price

$6.676USD

Market Cap

$690.576mUSD

Volume of Transaction

24h

$83.095mUSD

Circulating supply

77.502mFXS

Volume of Transaction

7d

$444.671mUSD

Change

24h

-13.27%

Number of Markets

258

Token conversion

/

Current Rate0

Available

0.00USD

Calculate

Historical Price

Introduction

Markets

3H

-4.42%

1D

-13.27%

1W

-4.67%

1M

+29.7%

1Y

+106.94%

All

+1.1%

Aspect Information
Short Name FXS
Full Name Frax Share
Founded Year 2020
Main Founders Sam Kazemian, Jason Huan
Support Exchanges Binance, Uniswap, Sushiswap, etc.
Storage Wallet Metamask, TrustWallet, Ledger, etc.

Overview of FXS

Frax Share (FXS) is a type of cryptocurrency token established in 2020 by Sam Kazemian and Jason Huan. As an essential component of the Frax Finance ecosystem, FXS functions as the governance token of the Frax protocol–which is a decentralized, fractional-algorithmic stablecoin protocol. The FXS token is listed on numerous crypto exchanges including Binance, Uniswap, and Sushiswap. For storage purposes, FXS is compatible with several crypto wallets like Metamask, TrustWallet, and Ledger.

Overview of FXS

Pros and Cons

Pros Cons
Participatory governance rights Volatile in nature
Listed on multiple exchanges Dependent on market liquidity
Integral part of a stablecoin protocol Complex understanding for new users
Supported by various storage wallets Potential smart contract risks

Pros:

- Participatory Governance Rights: As a governance token, the FXS allows holders the right to vote on all adjustments and development proposals within the Frax Finance ecosystem. This helps increase system transparency and gives token holders a sense of ownership and control over the platform's future direction.

- Listed on multiple exchanges: The FXS token can be bought, sold, and traded on numerous exchanges, including high stature platforms like Binance, Uniswap, and Sushiswap. This wide availability simplifies the access process and offers users more trading options.

- Integral part of a stablecoin protocol: The FXS token plays a crucial role in the Frax stablecoin proto-cols. It's essential to the operation of the fractional-algorithmic mechanism, contributing to the stability and resilience of the system.

- Supported by Various Storage Wallets: The FXS token can be stored on popular and secure cryptocurren-cy wallets such as Metamask, TrustWallet, and Ledger. This offers users flexibility and choice when storing their tokens.

Cons:

- Volatile in Nature: Like any other cryptocurrency, the FXS token's value can be highly volatile, which may lead to substantial financial risk. Factors such as market demand, investor sentiment, technological changes, and macroeconomic trends can significantly influence the token's price.

- Dependent on Market Liquidity: The FXS token's functionality relies heavily on adequate market liquidity–an absence of which can be detrimental for token holders, affecting the ease at which the token can be bought or sold.

- Complex Understanding for New Users: The mechanisms behind the Frax Finance ecosystem and the role of the FXS token could be complex for new users to grasp. This complexity can act as a barrier for potential users who find difficulty in understanding how the token operates within the ecosystem.

- Potential Smart Contract Risks: The Frax protocol and FXS token transactions are handled through smart contracts. Although these digital contracts automate transaction processes, they are not immune to bugs, flaws, or hacks, which thereupon could lead to potential loss of assets.

What Makes FXS Unique?

Frax Share (FXS) represents an innovative approach in the field of stablecoin protocols by pursuing a unique fractional-algorithmic model. Unlike traditional stablecoins pegged entirely to a reserve asset, Frax is partially collateralized and partially algorithmic. This dual nature is the defining feature that sets FXS and the Frax Finance ecosystem apart, as it aims to smoothly adjust the balance between collateralization and algorithmic actions to maintain its peg to the US dollar.

FXS serves as the governance token of the Frax protocol, giving its holders the ability to vote on key parameters and decisions impacting the Frax Finance ecosystem's operation. This decentralization feature, while a commonality in several other DeFi protocols, works in tandem with the fractional-algorithmic model - a relatively new concept in stablecoin design.

In essence, the fractional-algorithmic stablecoin model is the primary attribute which distinguishes Frax Share from many cryptocurrencies which either operate solely on full collateralization or algorithmic stabilization. However, it's important to note these distinctions do not necessarily denote superiority or inferiority, but rather a different approach towards the intricate challenge of stablecoin design and the broader Decentralized Finance (DeFi) landscape.

How Does FXS Work?

Frax Share (FXS) works as the governance and equity token for the Frax Finance ecosystem. In conjunction with the Frax stablecoin (FRAX), FXS participates in a unique working model known as the fractional-algorithmic stablecoin protocol.

Here's a breakdown of how it operates:

The Frax protocol's objective is to maintain the FRAX stablecoin's peg to the U.S. dollar. This is achieved by a balance between collateralized reserves and algorithmic mechanisms, wherein both play a part in stabilizing the FRAX price.

FXS tokens enter the picture for their role in managing the fractional reserve rate. They allow for adjustments to the collateral ratio, essentially serving as the system's regulatory component. FXS token holders can vote on system parameters including the collateral ratio, helping to maintain stability in the system as market conditions fluctitate.

The protocol will increase or decrease the amount of collateral backing the FRAX stablecoin in response to its price relative to the U.S. dollar. If the price of FRAX is above $1, the protocol decreases the collateral ratio, effectively creating more FRAX using less collateral. Conversely, if FRAX's price falls below $1, the protocol increases the collateral ratio, necessitating more collateral to create new FRAX.

Another important principle in the FXS working model is the minting and burning mechanism utilized to help achieve price stability. When FRAX's price is above $1, the system allows for the minting of more FRAX (at a lower collateral ratio), which can then be sold, thus increasing supply and applying downward pressure on the price. If FRAX's price is below $1, the protocol encourages users to buy more FRAX (backed by more collateral) and burn it, thus reducing supply and creating upward pressure on the price.

In this working model, the FXS token plays a pivotal role in upholding the stability of the Frax Finance ecosystem, serving as its self-regulating mechanism to maintain the peg of the FRAX stablecoin to the U.S. dollar.

Circulation of FXS

The total circulating supply of FXS as of September 26, 2023 is 74.05 million. This means that this is the total amount of FXS that is currently in circulation and available for trading.

The price of FXS has fluctuated significantly since its launch. It reached an all-time high of $42.67 in January 2022, but has since fallen to its current price of around $5.45. There is no mining cap for FXS. This means that there is no theoretical limit to the amount of FXS that can be created.

Exchanges to Buy FXS

Several exchanges currently support the buying of FXS tokens. Below are ten of them, along with the token pairs they support. Please note that the pairs mentioned are just examples and are not exhaustive; a wider range of pairs may be available on these platforms.

1. Binance: Supports FXS/BTC, FXS/ETH, and FXS/USDT pairs.

2. Uniswap: On this decentralized exchange (DEX), FXS can be exchanged for any token available on the platform, including popular pairs such as FXS/ETH and FXS/USDC.

3. Sushiswap: As another DEX, Sushiswap allows for pairing FXS with numerous ERC20 tokens, such as FXS/ETH and FXS/USDT.

4. 1inch: This DEX also supports trading between FXS and other tokens available on the platform, including but not limited to FXS/ETH and FXS/DAI.

5. Balancer: Balancer, another decentralized exchange, allows for FXS pairing with numerous tokens—common pairs include FXS/ETH and FXS/WBTC.

6. Poloniex: At this centralized exchange, trading pairs include FXS/USDT.

7. Mooniswap: It's an automated liquidity protocol and users can trade between FXS and other ERC20 tokens offered on the platform.

8. Hoo: On Hoo, an international crypto exchange and wallet, possible pairs for FXS include FXS/USDT.

9. Donnie Finance: As a decentralized finance protocol, users can swap FXS with multiple potential trading pairs.

10. Gate.io: This exchange supports FXS/USDT pairing.

Exchanges to Buy FXS

Since these trading pairs can change or become deprecated based on the exchange's policies and trading volumes, it's always best to check the respective exchange for the most current information.

How to Store FXS?

Frax Share (FXS) is an ERC-20 type token, which means it is built on the Ethereum blockchain. As a result, it can be stored in any wallet that supports Ethereum-based tokens. Here are examples of three broad type of wallets that can be used to store FXS:

1. Web Wallets: These are online wallets that can be accessed via different web browsers. An example is MetaMask, a widely-used Ethereum wallet that allows users to store and manage their FXS tokens directly in their browser.

2. Mobile Wallets: These wallets come in the form of applications on mobile devices. They allow for easy access and management of tokens directly from a mobile device. TrustWallet is an example. As a versatile and user-friendly wallet, it's compatible with a wide range of tokens including ERC-20 tokens like FXS.

Trust Wallet

3. Hardware Wallets: These are physical devices that securely store a user's private keys offline, providing an extra layer of security against online threats. Ledger is a commonly used hardware wallet that supports ERC-20 tokens, including FXS.

These are only examples and many more wallets that support ERC-20 tokens can be used. Choice of wallet depends on individual requirements such as convenience, ease of use, safety, and preference.

Should You Buy FXS?

The suitability to buy FXS or any other form of cryptocurrency largely depends on one's financial circumstance, investment goals, risk tolerance, and understanding of the cryptocurrency space.

1. Cryptocurrency Enthusiasts: Owing to its unique fractional-algorithmic approach, FXS may appeal to cryptocurrency enthusiasts, especially those with an interest in stablecoins and decentralized finance. The investment allows them to participate directly in the governance of the Frax Finance ecosystem and gain exposure to a new kind of stablecoin protocol.

2. Long-term Investors: Individuals who seek long-term investment opportunities may also consider FXS. However, they should be aware that, like most cryptocurrencies, FXS exhibits price volatility and has the potential for both significant gains and losses.

3. Risk-tolerant Investors: FXS, like other cryptocurrencies, is suitable for individuals who have a higher risk tolerance. The cryptocurrency market can be highly volatile, and there is always the potential for losing the entire investment.

4. Technically Proficient Individuals: The complexities associated with the fractional-algorithmic nature of Frax Share mean that potential investors should ideally have a strong understanding of blockchain technology and the mechanisms which underpin stablecoins.

This analysis is not an endorsement or financial advice to invest in FXS, but rather a general guidance to be considered. Every individual should consult with a professional financial advisor before making any investment decision.

Conclusion

Frax Share (FXS) is a unique cryptocurrency token that anchors the operation of the Frax Finance ecosystem—a decentralized, fractional-algorithmic stablecoin system. As the governance token, FXS fulfills an indispensable role of regulating system parameters and thereby maintains the FRAX stablecoin's peg to the U.S. dollar.

As with any cryptocurrency, the development prospects of FXS are contingent on a myriad of factors like market adoption, technological enhancements, regulatory landscapes, and more. Notably, the stability and efficacy of the Frax protocol could play a meaningful role in its future. The fractional-algorithmic model presents a relatively new concept in stablecoin design, and how well it can adapt to market fluctuations while maintaining stability could be insightful for its future potential.

Regarding its potential profit, like any investment, speculative or otherwise, there is no guaranteed return. While the value of FXS may appreciate, it can also depreciate, sometimes significantly, given the inherent volatility of crypto markets. Revenue is also possible through Fraxs governance and staking options, but these too are subject to potential risk and market conditions.

It is crucial that every individual considering investing in FXS, or any other cryptocurrency, conduct thorough research, consider their risk appetite, and if necessary, seek independent financial advice. Crypto investments should only be undertaken with an understanding of the associated risks and potential losses.

FAQs

Q: Can FXS be traded on cryptocurrency exchanges?

A: Yes, FXS can be traded on several cryptocurrency exchanges, including but not limited to Binance, Uniswap, and Sushiswap.

Q: Where can I store my FXS tokens?

A: FXS tokens can be stored in any wallet that supports Ethereum-based tokens, including web wallets like Metamask, mobile wallets like TrustWallet, and hardware wallets like Ledger.

Q: What kind of investors are considered suitable for purchasing FXS?

A: Suitable investors for purchasing FXS include cryptocurrency enthusiasts, long-term investors, risk-tolerant individuals, and technically proficient individuals who have a solid understanding of stablecoin mechanisms and the cryptocurrency market.

Q: Can the value of FXS appreciate or depreciate?

A: Yes, similar to other cryptocurrencies, the value of FXS can both appreciate and depreciate based on market conditions, investor sentiment, and other influencing factors.

Q: What makes FXS unique compared to other cryptocurrencies?

A: What sets FXS apart is its role within the Frax Finance ecosystem, which uses a unique fractional-algorithmic stablecoin protocol, aiming to maintain a stablecoin pegged to the U.S dollar by dynamically balancing collateralization and algorithmic measures.

Risk Warning

Investing in cryptocurrencies requires an understanding of potential risks, including unstable prices, security threats, and regulatory shifts. Thorough research and professional guidance are advised for any such investment activities, recognizing these mentioned risks are just part of a wider risk environment.

User Reviews

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Windowlight
FXS (Frax Share) is a stablecoin-based cryptocurrency that has gained attention in the DeFi space. It provides a unique algorithmic approach to maintaining stability. However, its value can be influenced by various factors, so investors should closely follow its performance and the broader crypto market.
2023-11-07 02:11
9
0
Jenny8248
It's success hinges on market adoption and its ability to maintain stability in various economic conditions. very secured.
2023-11-22 19:37
7
0
hardwork
Frax Share is a fractional-algorithmic stablecoin that is pegged to the US dollar. Frax Share is backed by a basket of assets, including USDC, FXS, and FRAX.
2023-11-06 20:38
13
0