The community behind the decentralized financial stablecoin protocol Frax Finance has agreed to completely collateralize its native stablecoin Frax (FRAX), putting an end to the network’s previous reliance on algorithmic support.
The governance proposal for FIP-188, which was first posted on February 15 and would reform the collateralization model of FRAX, has now attained a quorum, and according to a snapshot taken on February 23, 98% of those voting have voted in support of the plan.
According to what was said in the proposal, “the moment has come for Frax to progressively eliminate the algorithmic basis of the protocol.”
It was mentioned that the first protocol had a “variable collateral ratio” that changed dependent on the amount of demand there was for the stablecoin in the market. The market would determine the amount of collateral that must be deposited in order for one FRAX to be equivalent to one United States dollar.
The…
