Frax Shares (FXS): project review, recent developments, future events, community

Frax Shares are part of the Binary Token ecosystem in the Frax Protocol, which is an open source, licenseless, fully blockchain protocol built on Ethereum. Frax protocol is the first algorithmic stable system.

The Frax Finance protocol is partly backed by guarantees and partly algorithmically stable. FXS is the governance token for generating fees, revenue and excess collateral value.

The other half, the FRAX stablecoin (FRAX), maintains its peg to the US dollar by being partially collateralized by the US dollar coin (USDC). Frax shares are also periodically bought and sold to maintain the market value of FRAX.

FXS holders are incentivized to invest in the token because the FRAX minting mechanism creates demand for FXS. As FRAX tokens are minted, a proportional number of FXS tokens are burned, driving up the price of FXS.

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Recent developments and future events

Frax’s powerful lineup of products, especially its liquid derivative (LSD), is one of its most talked-about features. While FRAX-USDC generates an APR of 10%, holding FRAX-FXS can earn you an APR of 49% on optimism.

Frax’s ether (frxETH) product, which launched in October, is now raising capital at 10% APR. At the time of writing, frxETH holds $104.98 million from just $50 million at the beginning of January.

The explosive growth of frxETH product is due to the superiority it has over its competitors. While they offer an APR of up to 10%, Frax Finance’s closest ETH betting competitor offers 5%.

On January 20, leading cryptocurrency trading firm Bybit announced the upcoming listing of FXS on its spot trading platform. While FXS USD deposits were opened on the same day, withdrawals will be available from January 21, 2023.

This comes just one day after Binance Futures announce Launch a perpetual contract with FXS with up to 20x leverage. Frax’s rapid growth has attracted more users to the project, which has helped increase its price.

Frax Shares (FXS) is the biggest cryptocurrency gainer over the past week, as the token price jumped 55.3%. In the past month, FXS has doubled its price, making it one of the best performing crypto assets.

Frax (FXS) stock price chart over 7 days. Source: CoinMarketCap

In the past 24 hours, FXS has also been pumping, gaining 11%. As a result of recent gains, FXS price has crossed the $10 mark for the first time since May 2022, when the Terra ecosystem collapsed.

24-hour price chart for Frax stock (FXS). Source: CoinMarketCap

FXS It is now trading at $10.12 and ranked as the 58th largest cryptocurrency with a market cap of $728 million.

Frax Shares is growing into one of the largest communities in the DeFi space, thanks to its market-leading liquidity derivatives programs.

Commenting on its products, crypto marketplace creator @ShaharAbrams Writes:

Blockchain and DeFi researcher Thor Hartvigsen at A thread Common reasons why the Frax community is excited about 2023.

Cryptocurrency trader @CryptoDefiLord bullish on FXS, writing:

Frax Finance’s fantastic staking product continues to give it a competitive edge. With the opening of cryptocurrency ETH about to open, the volume of frxETH is expected to increase further. These advantages can make Frax Finance a major player in the DeFi sector as it gains more popularity.

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