**FRAX** is the [stablecoin ](https://iq.wiki/wiki/stablecoin)of the [Frax Finance](https://iq.wiki/wiki/frax-finance) Protocol and it is designed to be pegged to the US dollar.  
  
## **Overview**  
  
FRAX is the stablecoin of the [Frax Finance](https://iq.wiki/wiki/frax-finance) Protocol. The FRAX stablecoin is designed to be pegged to the US dollar. FRAX is the first and only stablecoin with parts of its supply backed by collateral and part of the supply algorithmically stabilized. [\[3\]](#cite-id-txwp0gwq5rl)  
  
The price of FRAX and collateral are all calculated with a time-weighted average of the [Uniswap](https://iq.wiki/wiki/uniswap) pair price and the [ETH](https://iq.wiki/wiki/ethereum):USD Chainlink oracle. The [Chainlink](https://iq.wiki/wiki/chainlink) [oracle](https://iq.wiki/wiki/oracle) allows the protocol to get the true price of USD instead of an average of stablecoin pools on Uniswap. [\[1\]](#cite-id-r5i71klcr7)  
  
Historically, at genesis, FRAX was 100% collateralized, meaning that minting FRAX only requires placing collateral into the minting contract. During the fractional phase, minting FRAX required placing the appropriate ratio of collateral and burning the ratio of [Frax Shares (FXS)](https://iq.wiki/wiki/frax-share). The protocol is designed to accept any type of [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) as collateral and this implementation of the Frax Protocol mainly accepted on-chain stablecoins as collateral to smoothen out volatility in the collateral in order for FRAX to transition to more algorithmic ratios smoothly. This design was implemented so that as the velocity of the system increases, it becomes easier and safer to include volatile cryptocurrency such as [ETH](https://iq.wiki/wiki/ethereum) and wrapped [BTC](https://iq.wiki/wiki/bitcoin) into future pools with governance. [\[5\]](#cite-id-mny6qlz3z8f)  
  
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## **Price stability**  
  
FRAX remains pegged to the US dollar due to the Algorithmic Market Operations Controller (AMO), a framework for composable, autonomous central banking legos.  
  
Frax Finance protocol expanded on the idea of fractional-algorithmic stability by introducing the idea of the “Algorithmic Market Operations Controller” (AMO).  
  
An AMO module is an autonomous contract(s) that enacts arbitrary monetary policy so long as it does not change the FRAX price off its peg.  
  
AMO controllers can perform open market operations algorithmically but cannot arbitrarily mint FRAX out of thin air and break the peg. The AMO controllers allows keeping FRAX’s base layer stability mechanism pure and untouched.  
  
Properties of each AMO:  
  
* Decollateralize - the portion of the strategy which lowers the CR  
* Market operations - the portion of the strategy that is run in equilibrium and doesn't change the CR  
* Recollateralize - the portion of the strategy which increases the CR  
  
## **Deployments**  
  
FRAX was deployed on 14 different networks (Arbitrum, Aurora, [Avalanche](https://iq.wiki/wiki/avalanche), Boba, [BSC](https://iq.wiki/wiki/binance-smart-chain), [Ethereum](https://iq.wiki/wiki/ethereum), Evmos, [Fantom](https://iq.wiki/wiki/fantom), [Harmony](https://iq.wiki/wiki/harmony), [Moonbeam](https://iq.wiki/wiki/moonbeam-network), [Moonriver](https://iq.wiki/wiki/moonriver-network), Optimism, [Polygon](https://iq.wiki/wiki/polygon), Solana). [\[4\]](#cite-id-oyrgbsmzlym)  
  
## **Frax Staking**  
  
Frax Finance protocol allows FRAX holders to lock up FRAX tokens to generate yield on various pools on different chains. [\[2\]](#cite-id-hjlmocm4xv4)

FRAX is the stablecoin of the Frax Finance Protocol and it is designed to be pegged to the US dollar.

FRAX (Stablecoin)

Tether (USDT) is a [blockchain](https://iq.wiki/wiki/blockchain)-based [stablecoin](https://iq.wiki/wiki/stablecoin) pegged 1:1 to the U.S. dollar and backed 100% by actual assets in the Tether platform’s reserve account. Tether Limited is owned by Hong Kong-based company iFinex, which also owns [Bitfinex](https://iq.wiki/wiki/bitfinex).[\[1\]](#cite-id-lwqk5620rqp)[\[2\]](#cite-id-b0ibwt203ek)[\[3\]](#cite-id-kepuzk9pwmp)  
  
In July 2014, Tether was launched as RealCoin then later rebranded as Tether in November 2014 and went public in February 2015. Tether, which was initially built on the [Bitcoin](https://iq.wiki/wiki/bitcoin) blockchain using the Omni platform is now supported on multi-chains including the [Ethereum](https://iq.wiki/wiki/ethereum), TRON, [EOS](https://iq.wiki/wiki/eos), [Algorand](https://iq.wiki/wiki/algorand), Solana, OMG Network, [Polkadot](https://iq.wiki/wiki/polkadot), and [Polygon](https://iq.wiki/wiki/polygon) blockchains.[\[4\]](#cite-id-03s8mkhcz6n2)  
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 In April 2022, Tether's USDT accounted for two-thirds of exchanges out of Bitcoin by value.[\[8\]](#cite-id-lhh5qw26wo) As of November 2022, Tether is the largest stablecoin and third-largest cryptocurrency by Market cap after [Bitcoin](https://iq.wiki/wiki/bitcoin) and [Ethereum](https://iq.wiki/wiki/ethereum).[\[5\]](#cite-id-yek1jnrz9lj)  
  
# Overview  
  
Tether was issued on the [Bitcoin](https://iq.wiki/wiki/bitcoin) [blockchain](https://iq.wiki/wiki/blockchain) through the Omni Layer Protocol. Each unit of Tether is said to be backed by actual assets in the Tether Limited reserve and may be redeemed via its platform. The primary objective is to facilitate transactions between [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) exchanges with a rate fixed to the United States dollar allowing traders to take advantage of high-speed arbitrage opportunities without resorting to slow bank wires.[\[6\]](#cite-id-pw2j5ma35xh)  
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Tether is the first [stablecoin](https://iq.wiki/wiki/stablecoin) to be created and the most popular stablecoin used in the cryptocurrency ecosystem. Tether tokens are issued by Tether Limited. Tether converts cash into its own cryptocurrency - ‘tether’ or attaches the value of a coin to the price of fiat currencies such as the US dollar, Euro, and Yen. The ideal situation would be one in which the conversion rate is always 1 tether USDT = 1 USD (i.e., tether trades at $1 on all markets) and that it can be used in place of a dollar.[\[7\]](#cite-id-c7lv2gnedk)  
  
According to Tether Limited, the tether is fully reserved i.e the total number of tethers in circulation is less than or equal to the remaining balance of fiat currency in its reserve. Exchanges have been the primary users of USDT as an alternative to fiat currencies, which minimizes or completely eliminates the need to maintain external banking relations. Some of the notable exchanges that utilize Tether include [Bitfinex](https://iq.wiki/wiki/bitfinex), [Binance](https://iq.wiki/wiki/binance), [Coinbase](https://iq.wiki/wiki/coinbase), [Kraken](https://iq.wiki/wiki/kraken), [Huobi](https://iq.wiki/wiki/huobi), [Poloniex](https://iq.wiki/wiki/poloniex), Liquid.io, and OKEx.[\[7\]](#cite-id-c7lv2gnedk)  
  
# History  
  
## Early Beginnings (2014-2015)  
  
Tether, known initially as Realcoin, was founded in July 2014 by Brock Pierce, Reeve Collins, and Craig Sellars. Through the Omni platform, it was developed as a second-layer cryptocurrency token created on top of the Bitcoin blockchain. It was later rebranded to USTether and then to USDT in Q4 2014.[\[9\]](#cite-id-0pjv955uiyq)  
![maxresdefault.png](https://ipfs.everipedia.org/ipfs/QmeEssKoWr9AdJGuh3hkV9aMFvKauKKZRpM4t34e3wDkZ8)  
Tether was created as an attempt to solve two major issues with existing cryptocurrencies: high volatility and convertibility between fiat currencies and cryptocurrencies. Tether developed a cryptocurrency that is fully backed 1:1 by bank deposits of U.S. dollars in order to overcome these alleged difficulties. While Tether used the Omni layer to represent USDT tokens on Bitcoin, [ERC-20](https://iq.wiki/wiki/erc-20) tokens were used to represent USDT tokens on Ethereum. While the tokens themselves operated in a decentralized network, Hong Kong-based Tether Ltd was solely responsible for creating and redeeming tokens as well as maintaining the 1:1 deposit backing.[\[9\]](#cite-id-0pjv955uiyq)  
  
## Further Development (2016-2022)  
  
In November 2018, Tether announced Deltec as its new banking partner to quell rumors about its solvency raised by the associated crypto exchange, [Bitfinex](https://iq.wiki/wiki/bitfinex).[\[10\]](#cite-id-qvcbywcuadg)  
  
In March 2019, Tether updated its disclosure statement and stated that its tokens are no longer fully backed by deposits in U.S. dollars. Instead, Tether is now fully backed by reserves, which include conventional currency, cash equivalents, and occasionally other assets and receivables from loans that Tether has given to third parties, including perhaps connected organizations.[\[11\]](#cite-id-2ivgh6c0efe)  
  
### Tether Enters the Latin American Market  
  
In May 2022, Tether announced the launch of MXNT, a new [stablecoin](https://iq.wiki/wiki/stablecoin) backed by the Mexican peso. Following earlier launches of its USDT, EURT, and CNHT stablecoins, tied to the U.S. dollar, euro, and Chinese yuan respectively, the move signified its entrance into the Latin American market. At first, MXNT will be accessible on the Ethereum, Polygon, and TRON blockchains.[\[12\]](#cite-id-pwrqgbgudm8)  
  
According to the firm’s CTO, Paolo Ardoino, the decision to enter Latin America was motivated by the region's rising [Bitcoin](https://iq.wiki/wiki/bitcoin) adoption. Notably, a study by bitcoin payments firm Triple A found that 40% of Mexican businesses were interested in implementing cryptocurrencies in some capacity, with 71% of those in the segment concentrating especially on doing so.[\[12\]](#cite-id-pwrqgbgudm8)  
  
Tether named Mexico a “prime location” for the next Latin American crypto hub. In order to assess the viability of future fiat-pegged currencies in the region, the launch of MXNT is said to be used to onboard as many new users as possible inside the Latin American market.[\[12\]](#cite-id-pwrqgbgudm8)  
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In May 2022, Tether's price momentarily dropped to $0.96 as a result of the depreciation of a different stablecoin, TerraUSD (UST), issued by an entity unrelated to Tether or BitFinex. Tether stated it was continuing to satisfy redemption requests that surpassed 2 billion tokens on May 12 at a ratio of 1 token to 1 U.S. dollar. The price of Tether tokens rapidly recovered to more than $0.99.[\[13\]](#cite-id-kkb4wmxn87)  
  
### Integrations  
  
On May 27, 2022, Tether Operations Limited announced the launch of Tether tokens(USD₮) on [Polygon](https://iq.wiki/wiki/polygon), a leading [blockchain](https://iq.wiki/wiki/blockchain) development platform. The addition of Tether to the Polygon ecosystem offers a new stablecoin option for more than 8,000 teams building on Polygon.[\[14\]](#cite-id-9g7k3c9nrk)  
  
On June 9, 2022, Tether Operations Limited announced the launch of Tether tokens(USD₮) on Tezos, a pioneering upgradable [Proof-of-Stake](https://iq.wiki/wiki/proof-of-stake) blockchain. The addition of USD₮ to Tezos demonstrates its growing momentum as a thriving Proof-of-Stake blockchain of choice for brands and projects looking to build the [Web3](https://iq.wiki/wiki/web3) revolution.[\[15\]](#cite-id-skaajcvmcco)  
  
On September 12, 2022, Tether launched Tether tokens pegged to the U.S. dollar on the NEAR Network, a [smart contract](https://iq.wiki/wiki/smart-contract) blockchain designed to provide the ideal environment for [DApps](https://iq.wiki/wiki/decentralized-application) which is enabled by its unique scaling solution.[\[16\]](#cite-id-goxj396b95u)  
  
On September 23, 2022, Tether announced the launch of Tether tokens(USD₮) on [Polkadot](https://iq.wiki/wiki/polkadot), a decentralized, open-source blockchain platform. The addition of Tether to the Polkadot ecosystem will aid to increase its presence in decentralized ecosystems.[\[17\]](#cite-id-c7fdgym6nkq)  
  
On October 20, 2022, Tether Operations Limited announced SmartPay's launch plans of tether tokens (USD₮) in over 24,000 ATMs across Brazil.[\[18\]](#cite-id-xei4v3pmeci)  
  
## Regulation  
  
In April 2019, the New York Attorney General’s office alleged Bitfinex, who shares the same parent company as Tether of using Tether's reserves to cover up for its $850 million in losses connected to the controversial third-party payment processor known as Crypto Capital. Stuart Hoegner, general counsel for Bitfinex and Tether, filed an affidavit some days later after the NYAG's lawsuit stating that Tether was only backed by 74% cash and equivalents and the other portion was equity in iFinex.[\[19\]](#cite-id-7a24hb28i7)  
  
In May 2019, Bitfinex and Tether CTO, Paulo Ardoino announced Bitfinex had successfully raised $1 billion in a token sale, which proceeds were used to cover the $850 million in potentially lost funds from Crypto Capital.[\[19\]](#cite-id-7a24hb28i7)  
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## Legal status  
  
According to the platform's documentation, Tether is not a legal tender currency or a financial instrument. The ownership of Tether has no contractual rights, other legal claims, or guarantees against losses.  
  
Tether Limited is not a bank and is not required to, and does not, hold its reserves at the Federal Reserve. Tether tokens are not legal tender currency and are not covered by deposit insurance.[\[20\]](#cite-id-ervje8flkwn)  
  
## Tether Governance  
  
Tether Limited is the sole entity capable of altering the circulating supply of USDT tokens. When users deposit fiat money into accounts run by Tether Limited, Tether issues tokens, and when users exchange tokens for deposits of fiat money in Tether banks, Tether destroys tokens.  
  
Tether uses a proof-of-reserves approach to demonstrate that reserves are present and the system is financially sound. The system is fully collateralized when the quantity of USDT in circulation equals the amount of money held in accounts managed by Tether Limited. To ensure openness and demonstrate its financial stability, Tether Limited has guaranteed to provide audits of its bank balances on its website.[\[11\]](#cite-id-2ivgh6c0efe)  
  
### Other Stablecoins  
  
Other Tether-issued stablecoins are:  
  
* Tether gold (AUXT)[\[27\]](#cite-id-oofgfwit60s): pegged to gold’s price  
* Tether euro (EURT): pegged to the common currency of the European Union  
* Tether peso (MXNT): pegged to the Mexican peso  
* Tether yuan (CNHT): pegged to the offshore Chinese yuan  
  
## Team  
  
* JL van der Velde - Chief Executive Officer[\[21\]](#cite-id-ouzsld3brag)  
* Giancarlo Devasini - Chief Financial Officer[\[22\]](#cite-id-pvxl9n50gl)  
* Stuart Hoegner - General Counsel[\[23\]](#cite-id-hqdi2ufw1cj)  
* Paolo Ardoino - Chief Technology Officer[\[24\]](#cite-id-ptccnmj284)  
* Leonardo Real - Chief Compliance Officer[\[25\]](#cite-id-5hkbhmjsbmj)  
* Claudia Lagorio - Chief Operating Officer[\[26\]](#cite-id-ce2ctnc9bst)

Tether (USDT) is a blockchain-based stablecoin pegged 1:1 to the U.S. dollar and backed 100% by actual assets in the Tether platform’s reserve account.

Tether

USD Coin (USDC) is an [Ethereum](https://iq.wiki/wiki/ethereum)-based [stablecoin](https://iq.wiki/wiki/stablecoin). It is pegged 1:1 to the value of one USD and was launched in 2018. It is the product of Centre Consortium, an open-source technology project bootstrapped by contributions from Circle and [Coinbase](https://iq.wiki/wiki/coinbase).[\[1\]](#cite-id-2u36vdhxd3o)[\[2\]](#cite-id-g5vg5tj33d4)[\[3\]](#cite-id-p1ub9hal5ai) USDC is now supported on several [blockchains](https://iq.wiki/wiki/blockchain) including [Algorand](https://iq.wiki/wiki/algorand), [Avalanche](https://iq.wiki/wiki/avalanche), Solana, Stellar, and TRON.[\[4\]](#cite-id-77b3e0wwnlx)  
  
In November 2020, Circle partnered with Airtm and the Bolivarian Republic of Venezuela to deliver funds from the United States Department of the Treasury to Venezuelan citizens. It was the first time in U.S. history that a stablecoin would be used by the government to execute a foreign policy plan.[\[5\]](#cite-id-g7yamiwybti)  
  
As of October 2022, according to [CoinMarketCap](https://iq.wiki/wiki/coinmarketcap), USDC is among the most popular stablecoins, and by Market capitalization, ranks second only behind [Tether](https://iq.wiki/wiki/tether).[\[6\]](#cite-id-jz9mif4r8b)  
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# Overview  
  
On October 23, 2018, the well-known and trusted U.S.-based [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) exchange [Coinbase](https://iq.wiki/wiki/coinbase) announced support for the USD Coin (USDC), which is a stablecoin that they developed in collaboration with Circle Internet Financial. USDC is an ERC-20 token created on Ethereum using a [smart contract](https://iq.wiki/wiki/smart-contract) verifiable by anyone on the blockchain.[\[7\]](#cite-id-0t3m3s875lt)  
  
As USDC is an [ERC-20](https://iq.wiki/wiki/erc-20) token but pegged to Fiat currency, i.e United States dollar, it cannot be mined like [Bitcoin](https://iq.wiki/wiki/bitcoin) or other minable cryptocurrencies. It is backed by the United States dollar held in reserve bank accounts. Basically, the USDC Treasury, the Centre consortium that mints USDC, collectively holds US$1.00 for every single USDC. These funds are held in a special bank account that is constantly monitored and audited. USDC tokens can be changed back to USD at any time.[\[8\]](#cite-id-3il4em3r93v)  
  
USDC can be purchased and traded on both centralized and decentralized exchanges such as [Binance](https://iq.wiki/wiki/binance), [Coinbase](https://iq.wiki/wiki/coinbase), [Poloniex](https://iq.wiki/wiki/poloniex), OKEx, [Kucoin](https://iq.wiki/wiki/kucoin), [Bitfinex](https://iq.wiki/wiki/bitfinex), and [Uniswap](https://iq.wiki/wiki/uniswap).  
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# History  
  
USD Coin is developed by US-based company, Centre Consortium in partnership with global financial and blockchain technology firm, Circle and one of the leading cryptocurrency exchanges Coinbase. Center is an open-source, decentralized crypto-powered consumer payment network. They enable a more efficient and inclusive global marketplace by removing artificial economic borders. The circle was founded by entrepreneurs, [Jeremy Allaire](https://iq.wiki/wiki/jeremy-allaire) and Sean Neville in 2013.[\[9\]](#cite-id-dgpjkyy27f6)  
  
The Centre consortium was established in 2018 to manage the USD Coin. USDC became its first initiative when Coinbase offered the stablecoin to its users. Circle and Coinbase are the founding members. USD Coin launched on September 26, 2018. According to its first attestation released in October 2018, there were about 127 million USDC in circulation. By the end of 2021, the figure had grown to over 51 billion.[\[10\]](#cite-id-j1yv8456s6)  
  
In April 2020, Coinbase deposited $1.1 million in USDC stablecoins into the pools powering two of the most popular DeFi applications on Ethereum, [Uniswap](https://iq.wiki/wiki/uniswap), and [PoolTogether](https://iq.wiki/wiki/pooltogether). The investment came via the USDC Bootstrap Fund, which was launched in September 2019. This came after the introduction of [DeFi ](https://iq.wiki/wiki/defi)projects such as [decentralized exchanges](https://iq.wiki/wiki/decentralized-exchange) (DEX) like [dYdX](https://iq.wiki/wiki/dydx), [DApps](https://iq.wiki/wiki/decentralized-application) like [Aave](https://iq.wiki/wiki/aave), [liquidity pools](https://iq.wiki/wiki/liquidity-pool) like [Uniswap](https://iq.wiki/wiki/uniswap), and Wallets like Cobo Wallet, and Dexwallet that leverage USDC, which resulted in substantial growth in USDC's market cap.[\[11\]](#cite-id-5gbb261g42)  
  
On November 20, 2020, Circle announced its partnership with the Bolivarian Republic of Venezuela and Airtm. The parties worked together in delivering aid to Venezuelans using USDC, as the United States Department of the Treasury has had previous issues with sending funds to Venezuelan residents as a result of Dictator Nicolás Maduro blocking this aid. In a blog post, the company stated,  
  
> Through a collaboration with the Bolivarian Republic of Venezuela, led by President-elect Juan Guaido, U.S.-based fintech innovator Airtm, and coordination and licensing with the US government, we were able to put in place an aid disbursement pipeline that leveraged the power of USDC — dollar-backed, open, internet-based digital currency payments — to bypass the controls imposed by Maduro over the domestic financial system and put millions of dollars of funds into the hands of people fighting for the health and safety of the people of Venezuela.[\[5\]](#cite-id-g7yamiwybti)  
  
Funds from the U.S. Treasury flowed through a business account Airtm has with Circle. From there, USDC was sent to mobile digital wallets. Airtm had over half a million users in Venezuela alone which enabled the U.S. government to bypass the Venezuelan banking system, which was controlled by the country.  
  
In December 2020, Circle announced a partnership with Visa that allowed businesses in its payment network to accept the USD coin. In July 2021, Mastercard announced plans to test USD Coin as a payment method, and Stripe said in April 2022 that it would begin supporting USDC as a form of payment.[\[10\]](#cite-id-j1yv8456s6)  
  
As of October 2022, USDC is one of the most popular stablecoins and is ranked in the top 5 [cryptocurrencies](https://iq.wiki/wiki/cryptocurrency) on CoinMarketCap. Since its launch in 2018, USDC has progressed well and has achieved an image of the most trustworthy stablecoin.[\[12\]](#cite-id-hv8vw38ik19)  
  
# Use Cases  
  
As a price-stable digital asset, USDC has several use cases:  
  
* **Hedge against volatility:** Investors with exposure to other cryptocurrencies can reduce their portfolios' volatility by strategically buying a stablecoin like USDC. Owning USDC during periods of significant market volatility can help to stabilize a portfolio's value.  
* **Pricing in fiat money:** Pricing of digital assets listed on cryptocurrency exchanges in fiat money can be done using a stablecoin like USDC.  
* **Stable price-pegging:** The price stability of USDC enables it to represent equity ownership or fund investments. USDC can also be used to represent liabilities or debt.  
* **Remittances:** USDC can be used to send funds across borders. Recipients can store USDC without using a bank account or being concerned about price volatility.  
* **U.S. dollar exposure:** Non-U.S. investors that wish to gain exposure to the U.S. dollar can add USDC to their cryptocurrency investment portfolios.  
* **Hedge against inflation:** Non-U.S. investors concerned about inflation of their local currency can hold a stablecoin like USDC to help protect the value of their money.  
* **Global crowdfunding:** Startup companies and non-profit organizations can raise money from investors and donors worldwide by soliciting digital currency. Raising funds in the form of a stablecoin like USDC ensures that the value of the money raised does not fluctuate over time.  
* **Blockchain interconnection:** Using USDC can be a means to integrate payment systems and apps across blockchains because it is interoperable with a number of autonomous blockchains.[\[4\]](#cite-id-77b3e0wwnlx)  
  
## Transparency and Regulations  
  
USDC is an open-source project that works within U.S. money transmission laws and uses established banks and auditors. This is true financial and operational transparency. It is backed by Circle, a registered Money Transmitter, and regulated as a Money Services Business by the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury.[\[13\]](#cite-id-zoln1gpq2y8)  
  
Beyond the U.S., Circle is regulated as an Electronic Money Institution by the Financial Conduct Authority, held accountable to the treasury responsible for the UK's financial system and to the Parliament. So the issuance of USDC, the equivalent amount of USD is ascertained with one of the Circle’s trusted associates. All USDC tokens are regulated, transparent, and verifiable on the [blockchain](https://iq.wiki/wiki/blockchain).[\[13\]](#cite-id-zoln1gpq2y8)  
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## Security  
  
USDC is audited by well know accounting and auditing firm, Grant Thornton LLP. It issues attestations each month on the US dollar reserves that back the USDC tokens in circulation.[\[13\]](#cite-id-zoln1gpq2y8)

USD Coin (USDC) is an Ethereum-based stablecoin. It is pegged 1:1 to the value of one USD and was launched in 2018.

USDCoin

[Binance](https://iq.wiki/wiki/binance) USD (BUSD) (founded September 5, 2019) is an ERC-20 token issued on the [Ethereum](https://iq.wiki/wiki/ethereum) (ETH) [Blockchain](https://iq.wiki/wiki/blockchain) that aims to meld the stability of the dollar with [blockchain](https://beta.everipedia.org/wiki/blockchain) technology[\[1\]](#cite-id-2teml92bren). Binance USD (BUSD) is a USD-denominated [Stablecoin](https://beta.everipedia.org/wiki/stablecoin) approved by the New York State Department of Financial Services (NYDFS) and launched in partnership with Paxos and Binance[\[2\]](#cite-id-ln356iyiasq).  
  
Binance USD (BUSD) is the first [stablecoin](https://iq.wiki/wiki/stablecoin) launched as part of Binance's Venus project. Each Binance USD coin is backed by one US dollar, insured and held in Federal Deposit Insurance Corporation (FDIC) insured US bank accounts owned by Paxos, who has partnered with Binance to achieve [Stablecoin](https://beta.everipedia.org/wiki/stablecoin) regulations[\[3\]](#cite-id-k237znzz69l).  
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# History  
  
On September 5, 2019, Binance partnered with Paxos to create BUSD, a USD-denominated stablecoin that gained the approval of the New York State Department of Financial Services (NYDFS) from the get-go[\[4\]](#cite-id-lux6z4p2ps)[\[5\]](#cite-id-498wm56qvz7).  
  
BUSD was initially available on the Binance and Paxos platform for direct purchase and 1:1 redemption for U.S. dollars and can be traded on Binance.com for BTC, BNB, or XRP. The stablecoin is audited by nationally-ranked public accounting firm Withum[\[5\]](#cite-id-498wm56qvz7)[\[6\]](#cite-id-2br4carhsqh).  
  
On September 20, 2019, the BUSD became available on the Binance platform in trade with BTC, BNB, or XRP. The stablecoin is audited on a monthly basis by the accounting firm Withum as required by the NYDFS.  
  
# Overview  
  
Binance USD is a Digital Currency, simply offering to trade in US Dollars (USD). The exchange rate between BUSD and US Dollar is always 1:1. Binance USD is part of the Binance Coin platform, which is currently one of the largest cryptocurrency platforms in the world.  
  
Binance USD (BUSD) is Binance’s very own dollar-backed stablecoin that was launched to provide a Binance-native alternative to other leading stablecoins. BUSD can be utilized in a wide range of DeFi protocols and is a go-to base currency on decentralized trading pools on [Binance Smart Chain](https://beta.everipedia.org/wiki/binance-smart-chain).  
  
Binance USD not only offers a secure store of value, but it can also be used to earn yield in Binance Smart Chain’s fast-growing DeFi ecosystem[\[7\]](#cite-id-c3zjg0346fd). BUSD aims to meld the stability of the dollar with blockchain technology. It is a digital ﬁat currency, issued as ERC-20, and supports BEP-2. Paxos Trust Company is the USD custodian and issuer of BUSD[\[8\]](#cite-id-aesiyrp5yg).  
  
It is one of the only three STABLECOINS that has been approved by the US regulations[\[8\]](#cite-id-aesiyrp5yg).  
$$widget0 [YOUTUBE@VID](gdHmZiZBOQA)$$  
  
# Growth  
  
The growth and momentum of the BUSD stablecoin have been pretty remarkable, although having the backing of Binance has certainly helped. Even so, growing from a market cap of $17 million in September 2019 to $182 million in March 2020 is impressive, and it shows how strong the Binance community is, and how the company has been able to foster the adoption of the stablecoin even outside its own ecosystem.  
  
While BUSD is only #30 based on market cap among the total universe of cryptocurrencies, it is also ranked #5 among stablecoins. Interestingly the #4 stablecoin is Paxos Standard (PAX) with a market cap of $262 million. Considering the impressive growth rate of BUSD it could feasibly overtake PAX within the next month or two.  
  
Also, according to data from Binance, as of March 11, 2020, there were more than 40,000 users holding BUSD on Binance and Binance.US, with that user base growing by 20-30% on a weekly basis. There have also been 416 million BUSD purchased since the launch of the token, whether that be through Binance or Paxos, or through any of the 45 exchanges that allow for purchases and trading of BUSD.  
  
After passing the $100 million market cap milestone on March 11, 2020, Binance CEO Changpeng Zhao commented in a press release:  
  
> BUSD’s market cap crossing $100 million is a big milestone for Binance, illustrating the strong need and use of alternative assets in the market. We are looking forward to seeing more utility through the power of stable digital assets and serving our part with BUSD, a NYDFS-approved USD-based stablecoin.[\[9\]](#cite-id-eocuszudv7c)  
  
# People  
  
The notable people in Binance USD (BUSD) are Rich Teo; the Co-Founder of Paxos, Charles Cascarilla; the Chief executive officer and Co-Founder of Paxos, and [Changpeng Zhao](https://beta.everipedia.org/wiki/changpeng-zhao); the Chief executive officer and Founder of Binance.  
  
# Services  
  
Binance USD (BUSD) was founded to minimize the volatility associated with [Cryptocurrency](https://beta.everipedia.org/wiki/cryptocurrency). It improves the DeFi (Decentralized Finance) ecosystem allowing digital access to add accessibility, flexibility, and speed to transactions and skills.  
  
# Tokenomics  
  
Binance USD (BUSD) has a circulating supply of 3,159,603,005 BUSD coins and a maximum supply of 3.16 Billion. Binance is the current most active market trading it. Binance USD registers a historic All-Time Highest of $1.15 on March 13, 2020, and an All-Time low of $0.906729 on March 12, 2020[\[10\]](#cite-id-cu71xq2df2p).  
  
# Governance  
  
The Binance USD token circulating supply is solely altered by Paxos. Paxos issue tokens when users deposit fiat currency into Paxos bank accounts while Paxos destroys tokens when users redeem tokens for fiat currency deposits in Paxos bank accounts. In order to prove that reserves exist and the system is solvent, BUSD relies on a proof-of-reserves system whereby the system is fully collateralized when the number of BUSD in circulation matches the value of the funds held in segregated accounts at FDIC-insured, U.S.-domiciled banks by Paxos. Paxos publishes monthly reports proving the US dollar reserves that back the BUSD tokens in circulation.[\[11\]](#cite-id-7n5v7gw8iut)  
  
# BUSD Use Cases  
  
Based on the price stability, Stablecoin plays an important role in transactions, payments and settlement, and Decentralised Finance (DeFi). Some of the BUSD use cases include:  
  
1. Transfer your digital dollars (BUSD) anywhere in minutes, at low cost, and on the blockchain.  
2. Trade BUSD on different exchanges and DEX.  
3. Deposit BUSD to earn an interest rate.  
4. Pay BUSD as payment for goods and services.  
5. Use BUSD as collateral and loan asset.  
6. Use BUSD as cross collateral in Futures.  
7. Store BUSD on an exchange or in a wallet.

Binance USD (BUSD) (founded September 5, 2019) is an ERC-20 token issued on the Ethereum (ETH) Blockchain that aims to...

Binance USD

**Frax Finance**, also known as Frax, is a fractional-algorithmic [stablecoin](https://iq.wiki/wiki/stablecoin) protocol. The project is "the world's first fractional algorithmic [stablecoin](https://iq.wiki/wiki/stablecoin) with parts of its supply collateralized and parts algorithmic stabilized." [\[1\]](#cite-id-bf6ax035wn8)[\[2\]](#cite-id-0c27pmkbptf7)  
  
$$widget0 [YOUTUBE@VID](w5_91cCWFEQ)$$  
On November 16, 2020, the testnet was released for early users to experiment with and report bugs. The protocol officially launched on the Ethereum mainnet on Monday, December 21, 2020, at 0:00 UTC.[\[5\]](#cite-id-e6vooqlubh7)[\[6\]](#cite-id-h0em9lxbuvk)[\[7\]](#cite-id-lxpp94hnpen)  
  
On Monday, December 21, 2020, one hour after launch at 1:00 UTC the total value locked (TVL) in Frax Finance was over $43 million. As of Jan 13, 2021, a record 100 Million FRAX tokens have been minted, with a collateral ratio of around 85%.[\[8\]](#cite-id-3y670l1vr7f)  
  
On January 19, 2021, Frax Finance passed Wrapped Bitcoin (WBTC) to become the 5th most liquid token on [Uniswap](https://iq.wiki/wiki/uniswap) with over $130 million in liquidity.[\[9\]](#cite-id-o52jzagc6ca)  
  
On February 17, 2021, Frax Finance became the first algorithmic stablecoin to be listed on [Binance](https://iq.wiki/wiki/binance). Binance listed Frax Shares in their Innovation Zone with FXS/BTC and FXS/BUSD trading pairs opening on February 18, 2021, 9:00 AM (UTC) and deposits opening earlier.[\[10\]](#cite-id-23mmhqzmqt1)  
  
In January 2022, Frax Finance expanded its collaboration with [Chainlink](https://iq.wiki/wiki/chainlink) to bring the U.S. CPI data on-chain in support of the [Frax Price Index](https://iq.wiki/wiki/frax-price-index-fpi). [\[11\]](#cite-id-5nmmyksu3kv)  
  
## Trivia  
  
The Frax protocol takes inspiration from Robert Sams' 2014 academic paper titled “A Note on Cryptocurrency Stabilisation: Seigniorage Shares.”[\[12\]](#cite-id-yf7ir170kes)  
  
# Overview  
  
## Frax V1  
  
Before the inception of the Frax Finance protocol, stablecoins were divided into three different categories: fiat collateralized, overcollateralized with [cryptocurrency](https://iq.wiki/wiki/cryptocurrency), and algorithmic with no collateral. [FRAX](https://iq.wiki/wiki/frax-stablecoin) is a new type of decentralized [stablecoin](https://iq.wiki/wiki/stablecoin) classifying itself as fractional-algorithmic. [\[13\]](#cite-id-t4peql6thsf)  
  
The Frax protocol is the first [stablecoin](https://iq.wiki/wiki/stablecoin) designed to transition from fully collateralized to varying levels of fractional backing whereby parts of the supply are not backed by any assets but rather minted and bought back by the protocol itself to keep the price of the [FRAX](https://iq.wiki/wiki/frax-stablecoin) token at $1. [\[14\]](#cite-id-eh77xclzpa5)  
  
The protocol is a two-token system encompassing the [stablecoin Frax (FRAX)](https://iq.wiki/wiki/frax-stablecoin) and the [Frax Share token (FXS)](https://iq.wiki/wiki/frax-share) which accrues seigniorage revenue, and fees, and provides governance rights. [\[14\]](#cite-id-eh77xclzpa5)  
  
The project has also announced the third token, the Frax Bonds token (FXB) to be released at a future date which is an interest-bearing token representing debt in the system.  [\[14\]](#cite-id-eh77xclzpa5)[\[15\]](#cite-id-eot9by5mai9)  
  
As FRAX adoption increases, users of the protocol will be more comfortable with a higher percentage of FRAX supply being stabilized algorithmically rather than with collateral. [\[14\]](#cite-id-eh77xclzpa5)  
  
The price of [FRAX](https://iq.wiki/wiki/frax-stablecoin), [FXS](https://iq.wiki/wiki/frax-share), and collateral are all calculated with a time-weighted average price (TWAP) of the [Uniswap](https://iq.wiki/wiki/uniswap) pair price and the ETH: USD Chainlink oracle. The [Chainlink](https://iq.wiki/wiki/chainlink) oracle allows the protocol to get the true price of USD instead of an average of stablecoin pools on Uniswap. This allows FRAX to stay stable against the United States dollar itself which would provide greater resiliency instead of using a weighted average of existing stablecoins only.[\[14\]](#cite-id-eh77xclzpa5)  
  
## Frax V2  
  
Frax v2 expands on the idea of fractional-algorithmic stability by introducing the idea of the "Algorithmic Market Operations Controller" (AMO). An AMO module is an autonomous contract(s) that enacts arbitrary monetary policy so long as it does not change the [FRAX](https://iq.wiki/wiki/frax-stablecoin) price off its peg. This means that AMO controllers can perform open market operations algorithmically (as in the name), but they cannot arbitrarily mint [FRAX](https://iq.wiki/wiki/frax-stablecoin) out of thin air and break the peg. [\[16\]](#cite-id-xczfagb3p5g)  
$$widget0 [YOUTUBE@VID](Tsl5geLI_cA)$$  
  
# Tokenomics  
  
## Frax Share Token (FXS)  
  
[Frax Share Tokens](https://iq.wiki/wiki/frax-share) eschew DAO-like active management similar to [MakerDAO](https://iq.wiki/wiki/makerdao). FXS supply was initially set to 100 million tokens at genesis, but the amount in circulation is deflationary as [FRAX](https://iq.wiki/wiki/frax-stablecoin) is minted at higher algorithmic ratios. The design of the protocol is such that [FXS](https://iq.wiki/wiki/frax-share) would be largely deflationary in supply as long as [FRAX](https://iq.wiki/wiki/frax-stablecoin) demand grows. [\[14\]](#cite-id-eh77xclzpa5)  
  
FXS has control of the seigniorage and revenue flow of the protocol. FXS is similar to ownership/stake in the protocol, not debt which is a separate financial primitive. [\[14\]](#cite-id-eh77xclzpa5)  
  
## Token Distribution  
  
60% of all FXS tokens are to be distributed through various yield farming, liquidity incentives, and exclusive governance proposals across several years. Thus, a maximum of 60,000,000 FXS will be distributed to the community for liquidity programs and other Defi initiatives as they appear in the space as voted by governance. 5% of all tokens are allocated to Project Treasury, grants, partnerships, and security bug bounties via team and community discretion. The Project Treasury is an entire community and team-governed pool of FXS. It should be used for making grants for the development of the Frax technology, open-source upkeep of the code, future audits of smart contracts, bug bounties through responsible disclosure, possible cross-chain implementations, creation of new protocol-level features and updates, Gitcoin grants for the Ethereum community, Frax Improvement Proposals (FIPs), partnerships with exchanges and [DeFi](https://iq.wiki/wiki/defi) projects, providing liquidity on AMMs at launch. The usage of this fund is dependent on the discretion of the team and community.  
  
20% of all FXS tokens are to be distributed to the team, founders, and early project members. 3% are advisory tokens that are allotted for strategic work done in legal, technical, and business efforts to advance the adoption of the Frax protocol. The tokens are vested evenly over 3 years. 12% are distributed to accredited private investors. The first round in Frax was done in August 2020 with a small allocation that was sold out in under 2 hours. This allocation will have a small number of their tokens, \~2% unlocked at launch. The remainder of the round was done individually through private placements. The remaining 10% is vested evenly over 1 year, half of which has a 6-month cliff. [\[17\]](#cite-id-0vj9ec9e3v3n)  
  
## veFXS  
  
In May 2020, the protocol allowed FXS holders to lock up FXS tokens to generate veFXS and earn special boosts, special governance rights, and AMO profits. [\[18\]](#cite-id-z83cf5qaqon)  
  
veFXS is a vesting and yield system based on Curve’s veCRV mechanism. Users may lock up their FXS for up to 4 years for four times the amount of veFXS (e.g. 100 FXS locked for 4 years returns 400 veFXS). veFXS is not a transferable token nor does it trade on liquid markets. It is more akin to an account-based point system that signifies the vesting duration of the wallet's locked FXS tokens within the protocol. [\[18\]](#cite-id-z83cf5qaqon)  
  
The veFXS balance linearly decreases as tokens approach their lock expiry, approaching 1 veFXS per 1 FXS at zero lock time remaining. This encourages long-term staking and an active community. [\[18\]](#cite-id-z83cf5qaqon)  
$$widget0 [YOUTUBE@VID](ce9y8_bQCIE)$$  
  
## Frax Price Index (FPI)  
  
In January 2022, Frax Finance announced the expansion of their integration with [Chainlink](https://beta.everipedia.org/wiki/chainlink) to support the launch of the new [Frax Price Index (FPI)](https://iq.wiki/wiki/frax-price-index-fpi), an algorithmic [stablecoin](https://iq.wiki/wiki/stablecoin) designed to be inflation-resistant and an entirely new unit of account. [FPI](https://iq.wiki/wiki/frax-price-index-fpi) will be pegged to a decentralized consumer price index (CPI) with crypto native elements added on top of Chainlink’s custom CPI oracle built for FRAX. Frax and Chainlink's initial integration, now live on Ethereum, involves using the Chainlink Any API functionality to create a decentralized, on-chain reference contract that stores the most up-to-date U.S. government Consumer Price Index (CPI) data. [\[19\]](#cite-id-st5ron6mhsk)  
  
$$widget0 [YOUTUBE@VID](oLRb6ROBiqk)$$  
  
## Frax Price Index Share (FPIS)  
  
[The Frax Price Index Share (FPIS)](https://iq.wiki/wiki/frax-price-index-share-fpis) is the governance token of the [Frax Price Index (FPI)](https://iq.wiki/wiki/frax-price-index-fpi) stablecoin which launched in April of 2022.  
  
# Gauges  
  
The FRAX gauge weighted system for controlling FXS emissions & FRAX expansions allows FXS holders to stake for up to 4 years to generate veFXS and vote where future FXS emissions are directed. Users can vote for FRAX gauge weights with their veFXS balance. They can distribute their voting power across multiple gauges or a single gauge. This allows veFXS holders who are the most long-term users of the protocol to have complete control over the future FXS emission rate. Additionally, the gauge system lowers the influence of FRAX pairs where the majority of rewards are sold off since those LPs will not have veFXS to continue voting for their pair. This system strongly favors LP providers who continually stake their rewards for veFXS to increase their pool's gauge weight. Essentially, FRAX gauges align incentives of veFXS holders so that the most long-term oriented FXS holders control where FXS emissions go until the full community FXS allocation is distributed. Gauge weights are updated once every week every Wednesday at 5 pm PST. This means that the FXS emission rate for each pair is constant for 1 week and then updates to the new rate each Wednesday. Any user can change their weight allocation every 10 days. [\[20\]](#cite-id-vgamhn1rgsh)  
  
After all, FXS has been distributed, the gauge system will transition to controlling FRAX [stablecoin](https://iq.wiki/wiki/stablecoin) expansions as rewards for LPs. This switch from FXS to FRAX rewards will not occur for a few years until FXS emissions are nearing completion and allow the stablecoin to build trust, confidence, and the Lindy effect first. Additionally, veFXS stakers can feel confident staking the maximum duration of 4 years knowing that the gauge program is not temporary and won't be deprecated when FXS rewards end. The gauge weights will simply transition to distributing FRAX stablecoins as rewards perpetually.[\[21\]](#cite-id-oz0h8nq6vz8)  
  
# Fraxswap  
  
[Fraxswap](https://iq.wiki/wiki/fraxswap) is the first constant product [automated market maker](https://iq.wiki/wiki/automated-market-maker) with an embedded time-weighted average market maker (TWAMM) designed by [Frax Finance](https://iq.wiki/wiki/frax-finance). Fraxswap is mainly used for conducting large trades over long periods of time trustlessly. On June 2022, the [Frax Finance](https://iq.wiki/wiki/frax-finance) team announced the launch of Fraxswap.  
  
# Partnerships  
  
In January 2022, Frax was introduced as a service on Ondo Finance. The partnership will build on Ondo's Liquidity-as-a-Service offering and enable the use of $FRAX (provided by the protocol itself) as liquidity for token issuers. [\[22\]](#cite-id-pnpgkt6e1da)  
  
In December 2021, FRAX partnered with Sacred Finance to bring privacy and stability to [Defi](https://iq.wiki/wiki/defi). The partnership will allow users to lend FRAX privately and earn yield privately through Sacred. The same month, the Decentralized 3 Pool went live on Convex Finance. This is a triple collaboration between Frax, Fei Protocol, and [Alchemix (ALCX)](https://iq.wiki/wiki/alchemix). The vision is to make the D3 Curve pool the top choice for farming, saving, and holding [decentralized](https://iq.wiki/wiki/decentralized-application) dollar stablecoins. In December, NearPad partnered with Frax Finance to bring FRAX and FXS over to the Aurora and Near ecosystem. [\[23\]](#cite-id-smd0o2fddij)  
  
In September 2021, Pangolin and Frax Finance collaborated to bring the FRAX stablecoin to Avalanche. With the collaboration, Pangolin boosts the availability of stablecoins on the [Avalanche](https://iq.wiki/wiki/avalanche) network for users of Pangolin and provides sufficient liquidity in innovative [stablecoins](https://iq.wiki/wiki/stablecoin) like Frax. They added reward pools for the AVAX-FRAX pair and the AVAX-FXS pair to support liquidity. [\[24\]](#cite-id-qq2emt2dz5q)  
  
# Investors & Backers  
  
* [ParaFi Capital](https://iq.wiki/wiki/parafi-capital)  
* Mechanism Capital  
* Dragonfly Capital  
* [Crypto.com Capital](https://iq.wiki/wiki/cryptocom)  
* [Electric Capital](https://iq.wiki/wiki/electric-capital)  
* Multicoin Capital  
* [Galaxy Digital](https://iq.wiki/wiki/galaxy-digital)  
* Tribe Capital  
* Robot Ventures  
* Ascensive Asset Management  
* Calvin Liu (Div. VC)  
* Stani Kulechov ([Aave](https://iq.wiki/wiki/aave))  
* Kain Warwick, Jordan Momtazi ([Synthetix](https://iq.wiki/wiki/synthetix))  
* Eyal Herzog, Guy Benartzi ([Bancor](https://iq.wiki/wiki/bancor))  
* [Balaji Srinivasan](https://iq.wiki/wiki/balaji-srinivasan)  
* Santiago Roel Santos  
* Tetranode

Frax Finance is a fractional-algorithmic stablecoin Protocol. 

Frax Finance

Terra is a Decentralized system focused on enhancing the DeFi space through programmable payments in order to drive adoption.

Terra

**The Frax Price Index (FPI)** is the second stablecoin of the [Frax Finance](https://iq.wiki/wiki/frax-finance) ecosystem which launched in April, 2022. FPI is the first stablecoin pegged to a basket of real-world consumer items as defined by the US CPI-U average.  
  
## **Overview**  
  
The Frax Price Index (FPI) is the second stablecoin of the Frax Finance ecosystem. FPI is the first stablecoin pegged to a basket of real-world consumer items as defined by the US CPI-U average. The FPI stablecoin is intended to keep its price constant to the price of all items within the CPI basket and thus hold its purchasing power with on-chain stability mechanisms. Similar to [Frax Finance](https://iq.wiki/wiki/frax-finance)’s first stablecoin [FRAX](https://iq.wiki/wiki/frax-stablecoin), all FPI assets and market operations are on-chain and use Algorithmic Market Operations (AMOs) contracts. [\[4\]](#cite-id-bzntqaishro) [\[5\]](#cite-id-7i4irg1t2l7)  
  
$$widget0 [YOUTUBE@VID](oLRb6ROBiqk)$$  
  
## **Inflation & Peg Calculation**  
  
The FPI uses the CPI-U unadjusted 12 month inflation rate reported by the US Federal Government. [\[1\]](#cite-id-avrhyg4cpd) A [Chainlink](https://iq.wiki/wiki/chainlink) [oracle](https://iq.wiki/wiki/oracle) commits this data on-chain immediately after it is publicly released. The oracle's reported inflation rate is then applied to the redemption price of FPI stablecoins in the system contract.  
  
The redemption price grows per second on-chain (or declines in rare cases of deflation). The FPI peg calculation rate is updated once every 30 days when bls.gov [\[2\]](#cite-id-yvrhcopkxms) releases their monthly CPI price data. The FPI peg tracks the above 12 month inflation rate and pegs to it at all times from the FPI redemption contract.  
  
![FPI.png](https://ipfs.everipedia.org/ipfs/QmaomToPzwwTfhpCA3u1dvfrcscgsXTY9q1SEDeSqzjwie)  
  
## **FPI as a Unit of Account**  
  
[Frax Finance](https://iq.wiki/wiki/frax-finance) protocol stated that FPI aims to be the first on-chain stablecoin to have its own unit of account derived from a basket of goods, both crypto and non-crypto. While FPI can be considered an inflation resistant yield asset, its primary motivation is to create a new stablecoin to denominate transactions, value, and debt. Denominating [DAO](https://iq.wiki/wiki/dao) treasuries and measuring revenue in FPI as well as benchmarking performance against an FPI trading pair helps better gauge if value accrual is actively growing against inflation in real terms. FPI also aims to help ground on-chain economics to baskets of real world assets.  
  
As of now, FPI is comprised solely of [FRAX](https://iq.wiki/wiki/frax-stablecoin). However, Frax Finance protocol plans to include other crypto-native assets such as bridged [BTC](https://iq.wiki/wiki/bitcoin), [ETH](https://iq.wiki/wiki/ethereum), and non-crypto consumer goods and services.  
  
## **FPI Stability Mechanism**  
  
FPI uses the same type of Algorithmic Market Operations (AMOs) as the FRAX stablecoin. However, it is modeled to keep a 100% collateral ratio (CR) at all times.  
  
The collateral ratio stay at 100%, the protocol balance sheet must be growing at least at the rate of CPI inflation.  
  
The AMO strategy contracts earns a yield proportional to CPI otherwise the CR will decrease to below 100%.  
  
During times that AMO yield is under the CPI rate, the TWAMM AMO will sell FPIS tokens for FRAX stablecoins to keep the CR at 100% at all times. The FPIS TWAMMs isremoved when the CR returns to 100%.  
  
The FPI Controller Pool [\[3\]](#cite-id-grpc9tsjd1t) has various helper functions related to FPI and its peg.  
  
* Mint / Redeeming: Users are able to mint FPI with FRAX or redeem FPI for FRAX. There is a small fee which is initially 0.30%.  
* twammToPeg: The twammToPeg function is used by the protocol to introduce market pressure to bring the market price of FPI up (or down) to the target peg price.  
* giveFRAXToAMO / receiveFRAXFromAMO: The contract lend FRAX collateral to various AMOs that earn yield (among other things).  
  
## **FPI Staking**  
  
Frax Finance protocol allows FPI holders to lock up FPI tokens to generate yield on [Fraxswap](https://iq.wiki/wiki/fraxswap) and Convex.

FPI is the first stablecoin pegged to a basket of real-world consumer items as defined by the US CPI-U average. 

Frax Price Index (FPI)

**Ambrosus** is a Proof-of-Authority public Layer One [blockchain](https://beta.everipedia.org/wiki/blockchain) [protocol](https://beta.everipedia.org/wiki/ocean-protocol) that has the unique capability to securely store large datasets. Ambrosus is considered to be a low-cost and ultra-secure L1 [blockchain](https://beta.everipedia.org/wiki/blockchain) scaling solution with high throughput and [decentralized](https://beta.everipedia.org/wiki/decentralized-application) storage. Designed for enterprises, optimized for the future of [DeFi](https://beta.everipedia.org/wiki/defi-dad), [NFTs](https://beta.everipedia.org/wiki/non-fungible-token-nft), and IoT.[\[6\]](#cite-id-mr5irv0pzu)[\[7\]](#cite-id-09nhq9auddcu)  
  
On the 23rd of June, 2022 Ambrosus Core is announced its final network push to switch to the new [Ethereum](https://beta.everipedia.org/wiki/ethereum-classic) client OpenEthereum. Nodes are required to install the latest update in order to remain operational.[\[8\]](#cite-id-zl6i8yda9gn)  
  
# Overview  
  
Ambrosus is an end-to-end integrated solution that includes hardware, software, a protocol layer and developer tools. The Ambrosus protocol and the software layer on top of it are built on the [Ethereum](https://beta.everipedia.org/wiki/ens) [blockchain](https://beta.everipedia.org/wiki/blockchain) as well as other distributed technologies that allow information from IoT devices to be recorded onto a decentralized network.  
  
Ambrosus uses a novel incentive mechanism called the Amber token to provide these functions in a [decentralized](https://beta.everipedia.org/wiki/decentralized-application) manner. The Amber token is used to keep information on the Ambrosus network up to date as products move across the supply chain without requiring a centralized actor to maintain resources. This token enables a transparent ecosystem with trustworthy data that can be freely accessed by interested parties.  
  
A key attribute of the Ambrosus network is its comprehensive support for IoT hardware and sensors, which provides the ability to tag and monitor physical objects and transmit data associated with them.[\[9\]](#cite-id-2aq72uuex8f)[\[10\]](#cite-id-n5kmd8d0kmh)  
  
# Ambrosus Core  
  
Ambrosus Core is the foundation that is responsible for network maintenance, upgrades, new [Decentralized Finance](https://beta.everipedia.org/wiki/decentralized-autonomous-organization-dao) features, core governance and funding ecosystem development. The foundation ensures all tools are provided to best embed the ecosystem into the world of [blockchain](https://beta.everipedia.org/wiki/blockchain) storage, [crypto](https://beta.everipedia.org/wiki/cryptocurrency) and [DeFi](https://beta.everipedia.org/wiki/value-defi).[\[11\]](#cite-id-b1msnagvui)  
  
## Funding  
  
On February 10, 2022, Ambrosus Ecosystem announced the launch of a substantial developer funding program of $10 million for developers deploying [decentralized finance (DeFi)](https://beta.everipedia.org/wiki/decentralized-information-asset) applications and other decentralized solutions on the Ambrosus [blockchain](https://beta.everipedia.org/wiki/blockchain). The grant was distributed among:  
  
* Startups: developers and entrepreneurs looking to launch a dApp on AMB-NET.  
* Open-source developers: individuals and teams developing open-source products on top of AMB-NET.  
* Educators: those who create unique and informative content for new Ambrosus Ecosystem participants.  
  
The grant was raised to aid in embedding Ambrosus at the center of DeFi developments.[\[4\]](#cite-id-9qrfmr1gicp)[\[5\]](#cite-id-tsf24nhd1kq)  
![10468ef2c6c5-ambrosus_core_announces__a__10_million_funding_initiative_to_boost_decentralized_finance.webp](https://ipfs.everipedia.org/ipfs/QmWAHfnL7uMKeZ4mhGaMFrafxMGax1mXzkYMNJJurfDEcT)  
  
# Ambrosus Token  
  
The heart of the Ambrosus network is the Amber token, an [Ethereum](https://beta.everipedia.org/wiki/ens) [ERC-20](https://beta.everipedia.org/wiki/erc-20) contract-compliant token that underpins all transactions on the Ambrosus network. Amber is the world's first data-bonded token.  
  
It is used to bind continuously updated and verified logistical, environmental and biological data from the supply chain to its corresponding product as it travels between counterparties. It is also used to carry out transfers of value within the ecosystem.  
  
As such, the token performs both the utility and transfer of value functions within the ecosystem of applications built on top of the Ambrosus protocol. Amber tokens remain bonded to a product until a defined expiration date or until the “termination event”, which can be defined by a purchase, delivery or any other event on the supply chain. [\[1\]](#cite-id-t3o5dgy8nhn)  
  
# Ambrosus Protocol  
  
The Ambrosus protocol is built to support high data loads from hardware devices and network participants with substantially higher capacity than standard [Ethereum](https://beta.everipedia.org/wiki/ens) software implementations.  
  
The Ambrosus protocol is constructed from three two components:  
  
**Measurements Repository:** Built around the Measurements Smart contract, this component manages a distributed dataset for product-specific measurements that are built on top of a programmable blockchain (Ethereum) and distributed file system (IPFS).  
  
**Amber token:** The data-bonded token architecture intrinsically ties data to AMB transactions on the blockchain, connecting chains together as products move through the supply chain.[\[2\]](#cite-id-um0p9znela)  
  
# Team   
  
The Ambrosus team members include:  
  
* Rory Gale-Financial Analyst  
* Lena Kail-Influencer Marketing Manager  
* Dmytro Karachan-Digital Marketing Manager  
* Kevin Keyner - Head Community Manager  
* Lang Mei - CEO  
* Dr. Stefan Meyer - Co-founder and Managing Partner  
* Igor Stadnyk - CTO  
* Connor McDonald - US Community Manager  
* Alina Tustanovska - Delivery manager  
* Andrii Moiseienko - Product Manager[\[3\]](#cite-id-32cac3ilbtg)  
      
    <br>  


Ambrosus is a Proof-of-Authority public Layer One blockchain protocol 

Ambrosus

**Empty Set Dollar** (ESD) is a [decentralized](https://iq.wiki/wiki/decentralized-application) elastic-supply stablecoin created by the Empty Set Squad. The ESD protocol expands on the pioneering work of Basis.io, aiming to solve core issues within their mechanics. To make the protocol work on [Ethereum](https://iq.wiki/wiki/ethereum), the ESD anonymous team incorporated ideas from 0x Staking, Rho protocol, and builds on top of [Uniswap V2](https://iq.wiki/wiki/uniswap) oracles. [\[1\]](#cite-id-ndamchwuluj)[\[5\]](#cite-id-apdxbp9n9cu)[\[6\]](#cite-id-ytgin1fhcd)  
  
# Overview  
  
$$widget0 [YOUTUBE@VID](weoNSztySYM)$$The dollar is a single-token protocol. Empty Set Dollar (ESD) acts both as the stabilized dollar and as the [governance token](https://iq.wiki/wiki/governance-token) for the protocol.  To self-stabilize, the protocol uses voluntary supply expansions and contractions around a Time-Weighted Average Price (TWAP) oracle from the incentivized trading pool on [Uniswap](https://iq.wiki/wiki/uniswap).  
  
ESD price stability is based on an elastic supply model. To expand supply, new ESD tokens are minted and granted to bonded ESD holders or used to pay off protocol debt. When a contraction is necessary, ESD may be burned for a premium quantity of coupons, which can later be redeemed 1:1 for ESD when the supply once again extends. [\[1\]](#cite-id-ndamchwuluj)  
  
ESD protocol uses the coupon system, where the coupon is the method used to shrink the money supply. The protocol offers an incentive for users to voluntarily burn their ESD in return for a coupon that can be redeemed when the money supply grows again, to regain their ESD along with a bonus for having bought the debt.  
  
The team continuously tests the system, as well as generally tries to de-risk the design of its core mechanism, however, ESD contracts are unaudited. [\[1\]](#cite-id-ndamchwuluj)[\[7\]](#cite-id-ps0xhm3swq)[\[8\]](#cite-id-nox5o8t8hhh)  
  
# Bootstrapping ESD  
  
Empty Set Dollar was kickstarted on August 25, 2020, by calling the advance function and supplying into the liquidity pool. An article containing the information was published on Medium and Twitter for people to take part in this experimental coin. For the first 90 epochs (the length of time between adjustment to the money supply), the price of the [Uniswap](https://iq.wiki/wiki/uniswap) oracle was fixed at 1.10 USDC, meaning the supply would expand 10% every epoch. The epoch is set to be 8 hours. [\[2\]](#cite-id-1a92w0yyf2h)[\[9\]](#cite-id-4j3n2td6f9k)  
  
## Uniswap Pool Liquidity  
  
The [Uniswap](https://iq.wiki/wiki/uniswap) pool plays an important role in determining the price and thereby telling the protocol where to expand or contract in the next epoch. But, there needs to be sufficient liquidity in it for this to function properly otherwise it could be easily manipulated.  
  
The protocol needs sufficient time and incentive for people to know about and provide liquidity in the pool. Thus 5% of the expansion supply was decided as the initial reward to the liquidity provider. This is experimental and subject to change based on DAO voting. The return on the LP pool is changing on basis of the [liquidity](https://iq.wiki/wiki/liquidity-pool) locked. [\[3\]](#cite-id-hamnok4epyi)  
  
# DAO Governance  
  
The DAO is fully self-governing at launch. A new DAO implementation may be proposed at any time by any current stakeholder with at least 1% of the current DAO stake. Voters have 7 days to choose to either approve or reject the candidate's implementation. If a quorum of 33% is reached and more votes approve, then the new implementation may be committed. By allowing only full implementation upgrades, even for simple constant modifications, we ensure a lightweight governance process. [\[4\]](#cite-id-rrj86ud2j0c)[\[10\]](#cite-id-e3bl2kv6tts)  
  
<br>  
<br>  


Empty Set Dollar (ESD) is an algorithmic stablecoin that serves as the reserve currency of Decentralized Finance.

Empty Set Dollar

**Augmint** [decentralized](https://iq.wiki/wiki/decentralized-application) [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) built on *blockchain* technology, *augmint* uses *[Ethereum](https://iq.wiki/wiki/ens)* [smart contracts](https://iq.wiki/wiki/smart-contract) that offer sophisticated *cryptographic* security. It is a [decentralized](https://iq.wiki/wiki/decentralized-application) [stablecoin](https://iq.wiki/wiki/stablecoin) targeted to EUR (1 AEUR ≈ 1 EUR). A-EUR is the first Augmint token implemented. A-EUR is targeted to EUR.  
  
Users can Buy and sell AEUR for ETH or fiat currencies, get a loan in AEUR by depositing their ETH. Lock their AEUR to earn a premium.[\[10\]](#cite-id-ehmqx0o9yz)[\[11\]](#cite-id-fd7alljs5z)  
  
# Overview  
  
Augmint is a platform for launching asset-backed [stablecoins](https://iq.wiki/wiki/stablecoin).  It is a quick execution-driven Multiprocessor Simulator for Intel x86. Architecture s. It depends on MINT, however, gives a UI like that of Tangolite.  
  
Augmint is based on the idea of naturally changing the supply of each Augmint token along these lines as current fiat Money however in a straightforward, [decentralized](https://iq.wiki/wiki/decentralized-application), and secure Fashion.[\[1\]](#cite-id-hskxc1jg3lq)  
  
Augmint tokens are possibly given when another, guarantee-based advance is made. Tokens are scorched on reimbursement. If there should be an occurrence of credit default, the guarantee goes to Augmint strength saves, oversaw by keen agreements. Everything occurs in a robotized, cryptographically secure, and decentralized way. Boundaries for the new advances, the utilization of the stores for advertising intercessions are chosen by straightforward and Governance processes.  
  
The Augmint Project is a free relationship of partner people, gatherings, and associations with the regular reason for making and keeping up an open, decentralized, and appropriated record-based stable cryptographic money framework.[\[2\]](#cite-id-cwzyx6j9st)[\[12\]](#cite-id-dtwupzyda1)  
  
# Augmint multiprocessor simulation toolkit  
  
The most freely accessible recreation devices just mimic RISC models. These devices can't catch the guidance blend and memory reference patterns of CISC models. Yet, Augmint, as an execution-driven multiprocessor recreation toolbox that fills this hole, bolsters Intel x86 designs. Augmint additionally bolsters follow-driven simulation for uniprocessors just as multiprocessors, with minor exertion with respect to test system designers. Augmint runs m4 large scale expanded C and C++ applications, for example, those in the SPLASH and SPLASH-2 benchmark suites. Augmint underpins a string based programming model with shared worldwide location space and private stack space. Augmint bolsters a test system interface good with that of the MINT recreation toolbox for MIPS models, along these lines permitting the reuse of most engineering test systems composed for MINT. Augmint reproductions run on x86-based uniprocessor frameworks under Unix or Windows NT. [\[3\]](#cite-id-8y8yntc9363)  
  
# Features  
  
### Stable:  
  
With tokens targeted to their respective fiat, Augmint has low volatility and offers the stability cryptocurrencies typically lack.  
  
### Decentralized:  
  
Augmint operates in an open and transparent way, free from government, institutions, or banks.  
  
### Secure  
  
Built on [blockchain](https://iq.wiki/wiki/blockchain) technology, Augmint uses Ethereum smart contracts that offer sophisticated cryptographic security.  
  
# Augmint Working Mechanisms  
  
**MARKET MECHANICS**  
  
The essential establishment of dependability is the nonstop flexibility of Augmint tokens by means of advance beginning and a comparing interest for repaying advances on development. Further explicit highlights of the Augmint framework will progress in the direction of keeping up security by smoothing the interest and flexibly pinnacles and troughs. [\[4\]](#cite-id-pna1jp81xj)  
  
**LOAN PARAMETERS**  
  
On the off chance that An EUR cost going amiss from equality, at that point credit boundaries are changed in accordance with make it pretty much convincing to get An EUR advance for a specific computerized resource. This affects An EUR demand/supply.[\[5\]](#cite-id-tsnizy5qxj)  
  
**MARKET INTERVENTION**  
  
Augmint can intercede from its stores aggregated from expenses, defaults and interests. Augmint stores can be utilized on held uniquely for showcase intercession.[\[6\]](#cite-id-afrzpzqvnc7)  
  
**GET A-EUR**  
  
Clients can generally purchase or sell your A-EUR for cryptocurrencies (Ethereum, Bitcoin and so on.) on a decentralized trade. Auxiliary trades will offer direct fiat changes to/from A-EUR too. As the Augmint ecosystem develops you will require less and less to trade Augmint tokens to fiat money.[\[7\]](#cite-id-pkx05xixno)  
  
# Augmint Governance  
  
The principal rules, understandings and assets are kept up and implemented by smart agreements - cryptographically changeless algorithms running on the Blockchain.  
  
The organization mean to deal with the same number of "choices" as conceivable with shrewd agreements yet it's not plausible to get ready for each case with computerized smart agreements, for example, money related boundaries, trusted price oracles, new digital assets, contract discharges. These choices are made by stakeholders - governance token (GDC) holders. Augmint's governance model guarantees that all choices are law based and straightforward.  
  
Access to GDC is available to any individual who is eager to store A-EUR tokens. To incentify holding and casting a ballot with GDCs the benefit from expenses is circulated among GDC holders.[\[8\]](#cite-id-rfj4r0aeo1)[\[9\]](#cite-id-r4exe8cqy2i)  
  
# Team Members  
  
* Péter Petrovics - Co-founder, technologist  
* Károly Szabó - Co-founder, economist  
* Viktor Szathmáry - Strategic Advisor  
* Barnabás Debreczeni - Cryptocurrency specialist, Shinrai founder  
* Júlia Erő - Frontend developer  
* Brigitta Forrai - Frontend developer, designer  
* Ádám Ridovics - Frontend developer, designer  
* Róbert Szalóki - Frontend developer  
* Zoltán Treer - Blockchain developer[\[13\]](#cite-id-agmaq8djv7v)  
  
# Roadmap  
  
## Phase 0 - Concept and MVP development (Q2 2017 - Q4 2017)  
  
* Whitepaper and peer review  
    Model simulations  
    Core system  
    Loan and lock functions  
    Internal exchange  
    Initial security reviews  
    System testing  
  
## Phase 1.0 - Limited Pilot (Q1 2018 - Q2 2018)  
  
* Pilot with 20-50 users by invitation  
    1st fiat exchange integration  
    2 webshop integration for test  
    Token migrations and contract upgrade tests  
    Project legal framework  
    Further security audits.  
  
## Phase 1.1 - Further pilots (Q2 2018 - Q3 2018)  
  
* Multiple pilots with 300+ users  
    1st ATM in operation for test  
    Security audits and bug bounties  
    New site with advanced UI  
    New additional collateral (tokenized ERC20)  
    Extended monatery board  
  
## Phase 2.0 - Go public (Q3 2018 - Q2 2019)  
  
* 1000 users  
    3 fiat exchange integrations  
    10 ATMs in operation  
    3rd party wallet app integration  
    2 new, tokenized [ERC-20](https://iq.wiki/wiki/erc-20) collateral  
    Extra audits  
    Setup for B2B use  
    Ability to spend A€ without ETH balance  
  
## Phase 2.1 - Online commercial (Q2 2019 - Q1 2020)  
  
* 1000 transactions /day  
    Introducing A-USD (A$)  
    Acceptance on a respected fiat exchange  
    E-commerce plugins  
    Own mobile wallet app(s)  
    Fast and cheap transfer and transactions  
    Introducing margin type loan  
    Non ETH crypto collateral added  
    Introducing ATC tokens  
    Earning distribution contract  
  
## Phase 3 - Offline commercial & fully trustless operation (Q2 2020 - Q2 2021)  
  
* Worldwide expansion  
    5000 POS & 500 ATM  
    Accepted on major fiat exchanges  
    Trustless DAO operation  
    Introducing public voting tokens (GDC)  
    Trustless voting, elected monetary board  
    Fully trustless rates feed  
  
## Phase 4 - Worldwide token (Q3 2021 - )  
  
* Own blockchain  
    Augmint has alternate to top 5 fiat currencies  
    Liquid democracy style voting  
    Ambassadors in at least 100 countries.[\[14\]](#cite-id-cppobm8l3ds)  
      
  
## 

Augmint is a platform for launching asset-backed stablecoins.

Augmint

PoolTogether is a no-loss, audited savings game powered by blockchain technology. PoolTogether players sacrifice interest they could have earned on holdings of the stablecoin dai in exchange for a shot at winning the interest of everyone else in the pool[\[1\]](#cite-id-acbtgju2pbs).  
  
In February 2021, PoolTogether launched its own native token, POOL, and airdropped it to over 17,072 unique wallet addresses[\[2\]](#cite-id-br4wezw0kvq).  
  
# Overview  
  
On PoolTogether, each ticket sells for 20 Dai (the stablecoin generated by the MakerDAO protocol, which aims to keep a stable price at $1.00 each). Each pool sells as many tickets as it can, and all the Dai gets put into the Ethereum-based money market protocol, Compound.  There, all the ticket money collects interest over the life at the pool and at the end, one ticket earns all the interest off everyone’s ticket price.  
  
In February 2020, PoolTogether surpassed 2,000 users and 1,000,000 Dai.  Also in February, the company raised $1.05 million from IDEO CoLab Ventures, ConsenSys Labs and DTC Capital, based on a SAFE (Simple Agreement for Future Equity)[\[3\]](#cite-id-lhmqca8dsr).  
  
PoolTogether is one of the first and most widely used decentralized finance applications. It is a service that also allows users to stake cryptocurrency into lottery pools for a chance to win a significant weekly prize pool. The prize pools are made up of accumulated staking fees, and users can withdraw their full original deposit even if they don’t win.  
  
# Pods  
  
In April 2020, PoolTogether released pods – collaborative no-loss savings tools. It allows PoolTogether players to link their tickets and increase their overall chances of winning. If any ticket in the pod wins, the prize is split proportionally to everyone in the group based on the amount they contributed.  
  
While the payout per person will be less than single tickets, the increase in odds of winning creates an incentive for users to band together. Joining a pod does not exclude users from getting tickets for the main pool. Users can allocate however many tickets to a pod that they would like while still keeping some moonshot tickets for themselves on the side[\[4\]](#cite-id-po6rlynr3fn).  
  
The pods code is open source and has been audited by OpenZeppelin. Going forward, the PoolTogether team plans to add tools for anyone to easily create their own pod[\[5\]](#cite-id-0711ienv2yp).  
  
# POOL Token  
  
In February 2021, the POOL token went live and concluded a multi-year process of progressive decentralization creating the open-source, decentralized, and permissionless protocol for no loss prize savings, PoolTogether[\[6\]](#cite-id-j4xh2ox8qn).  
![fetched-img-e0409f5dd26bd000png.png](https://ipfs.everipedia.org/ipfs/QmUKqudCAcY74rSEizAiMN51TkYSdun9y4ycPNVHb2SfjG)*POOL Token*  
  
The POOL token exists to govern the PoolTogether protocol. Any changes to the protocol will be proposed and voted on by POOL token holders. These proposals can include things like adjusting the number of winners, launching new prize pools, integrating new yield sources, implementing scaling solutions, and controlling the future distribution of POOL to protocol contributors.  
  
## Token Distribution  
  
![fetched-img-afc8ba86c237000png.png](https://ipfs.everipedia.org/ipfs/QmNb2XAW9DpW3D1dFssBi57vajRbFEwRf6kAifPfNLQjVN)*Tokenomics*  
  
The POOL Token is being freely distributed to all contributors to the protocol. The total POOL token supply is 10,000,000. After a four-year waiting period, a 2% yearly inflation can be implemented if token holders choose. The following is the initial distribution:  
  
* 14% of total POOL supply distributed to all POOL depositors across the V1, V2, and V3 protocol up until January 14th, 2021, at midnight UTC. This is 17,072 unique addresses.  
* 12.44% of total POOL supply distributed to early core team contributors (locked for one year).  
* 7.52% of total POOL supply distributed to PoolTogether Inc investors (locked for one year).  
* 5% of total POOL supply allocated to an initial 14-week depositor distribution.  
* 2.5% of POOL supply allocated to onboarding and education of new users.  
* 1% of total POOL supply distributed to addresses that voted in the first two snapshot governance votes and held a PoolTogether deposit at the time of voting.  
  
PoolTogether is backed by some of the top venture capital firms in the world which allows users to focus on building an excellent open-source and decentralized protocol.  PoolTogether provides a low-friction onboarding experience for new users and infrastructure that can scale[\[7\]](#cite-id-9nzk72n144b).  
  
## How PoolTogether Works  
  
PoolTogether is an Ethereum-based platform that manages its reward pools through smart contracts. Reward pools are divided into two categories: those created by the PoolTogether project and community prize pools that anybody can create.  
  
### PoolTogether Prize Pools  
  
Users can deposit USDC, DAI, UNI, or COMP tokens into one of the four main reward pools. One ticket is represented by each token placed. The total amount of the pool represents all user cash deposited into that pool for that weekly draw, and there is no limit to how many tickets a player can purchase.  
  
Each pool is a smart contract that delivers all deposited funds to Compound Finance lending pools once a week, where they earn interest. A random number generator determines the winners at the end of the week, and they receive all of the interest generated by the pool over the week, as well as their tickets back.  
  
Unless the user opts to withdraw their winnings, they are converted to tickets and entered into the next draw automatically. Users who never withdraw their winnings will continue to increase their chances of winning by purchasing more tickets. The game resets for the next weekly round, and everyone else gets their initial investment back. If a user does not remove their tickets, they are automatically placed into the following week's draw.  
  
### Community Pools  
  
Anyone can put up a pool in a community. They share three key characteristics with the main Pool. Users won't lose money, they may withdraw money at any time, and there's a chance to win prizes if they join together prize pools. When someone creates a Community Prize Pool, however, they have complete control over which tokens users can deposit, how the yield is created, and how the awards are awarded.  
  
Currently, the most popular Community Prize Pools are BOND, DPI, and ZRX. However, due to lower participation, the prizes are generally significantly less for the Community Prize Pools than the main PoolTogether pools.  
  
Although a user can withdraw their stake at any moment, the PoolTogether protocol imposes an early withdrawal penalty to deter users from investing just before a draw and withdrawing immediately afterwards. If a player deposits and then immediately withdraws, they will be charged a penalty, which will be applied to the following draw.  
  
# PoolTogether V3.0  
  
No-loss prize games are pools of funds whose accrued interest is distributed as prizes.  
  
## How it works  
  
* Users deposit funds into a Prize Pool. They receive pool tokens in exchange  
* The funds earn interest  
* The interest is distributed by the Prize Strategy as pool tokens  
* Users withdraw their funds at any time by telling the Prize Pool to burn their pool tokens  
  
## Architecture  
  
### Prize Pool  
  
Prize pools are the foundation of all prize games. They pool user funds in a yield source and expose the yield to their Prize Strategy, which distributes the monies as needed. Prize Pools can be differentiated in four major ways:  
  
* The yield source the prize pool uses to generate no loss return  
* The prize strategy used to determine frequency and distribution  
* The rewards offered by the prize pool  
* The asset type the prize pool accepts for deposits  
* The fairness parameters  
  
### Prize Strategies  
  
Prize Strategies determine the prize distribution for the Prize Pool. They can define any logic to allocate tokens that the prize pool accrues.  
  
### Builders  
  
Builders make it easy to create pre-configured prize games. There are currently three Prize Pool types paired with the MultipleWinners. Prize Pool Builders allow users to create preconfigured Prize Pools. Builders create all contracts using teeny tiny proxies, so creating prize games is cheap

PoolTogether is a no-loss, audited savings game powered by blockchain technology.

PoolTogether

**Float Protocol** is a [Decentralized](https://iq.wiki/wiki/decentralized-application) Monetary System that uses of the $FLOAT token, a native internet currency whose value changes over time as demand for it, and [crypto](https://iq.wiki/wiki/cryptocurrency) also changes.[\[1\]](#cite-id-pd9vp27onag)  
The FLOAT token a [decentralized](https://iq.wiki/wiki/decentralized-application) currency backed by a Basket of solid [crypto](https://iq.wiki/wiki/cryptocurrency) assets, enabling users to escape fiat’s great monetary inflation while achieving low volatility.  
  
Float Protocol answers the problems of USD inflation, crypto volatility, and regulator scrutiny of [stablecoins](https://iq.wiki/wiki/stablecoin) with groundbreaking elegance and simplicity.[\[10\]](#cite-id-17nydhxm4o6j)[\[11\]](#cite-id-q0d0zvudvin)  
  
# Overview  
  
$$widget0 [YOUTUBE@VID](TnF-MG2u5ac)$$Float Protocol is a [Decentralized](https://iq.wiki/wiki/decentralized-application) Monetary System, it was started with the belief that cryptocurrency needed its denomination, a completely decentralized unit of account for the [DeFi (Decentralized Finance)](https://iq.wiki/wiki/defi) economy. [\[2\]](#cite-id-5lzx19co0uj)  
  
FLOAT tracks a basket of digital assets instead of trying to exactly match the price of a dollar. It is designed to change value over time corresponding to your digital purchasing power.[\[3\]](#cite-id-3uucgh40hy5)  
  
> "Our goal is to become DeFi money, the asset you cannot avoid, a decentralized floating currency for the crypto economy. We believe this is possible and we will do it regardless of the barriers along the way. To help us get there we are planning on spreading the word about FLOAT as much as possible and building with the Community"  
  
Since the launch, Float Protocol has targeted active and engaged [DeFi](https://iq.wiki/wiki/defi) participants for the distribution of BANK (governance and utility token), and they have:  
  
* Gained 4500 BANK holders, key long-term supporters, and believers in the Protocol.  
* Launched Scattershot — their fork of Snapshot which allows for multichoice weighted voting.  
* Published Litepaper — The first interactive litepaper in the crypto space.  
* Achieved $1.5 Billion TVL during Phase 2 of BANK distribution via Community chosen pools.  
* Created one of the first incentivized G-UNI [stablecoin](https://iq.wiki/wiki/stablecoin) pair pools (FLOAT-USDC low fee on [Uniswap v3](https://iq.wiki/wiki/uniswap))  
  
The team gave out POAP badges to acknowledge all the Genesis participants who managed to mint their FLOAT tokens before the first Dutch Auction held by the Protocol.[\[13\]](#cite-id-avdvf77zaud)[\[14\]](#cite-id-ct3co4net3n)  
  
## Funding  
  
On the 30th of September 2021, Float Protocol Raised $1.2M from DeFi Leaders such as The LAO, 0xMaki, and MCV to Create a Truly [Decentralized](https://iq.wiki/wiki/decentralized-application), Non-Dollar [Stablecoin](https://iq.wiki/wiki/stablecoin).[\[12\]](#cite-id-m8gc58hjwe)  
  
# Tokens  
  
‌Float Protocol is supported by two tokens, the $FLOAT token, and the $BANK token.  
  
## $FLOAT Token  
  
The FLOAT token is designed to be the first truly native internet currency.[\[4\]](#cite-id-5f4ugcjcb4q)  
  
FLOAT is one of the few [stablecoins](https://iq.wiki/wiki/stablecoin) in the DeFi space that isn’t chasing a one-dollar peg. The lack of a peg means that FLOAT can avoid stereotypical protocol collapse scenarios, while still providing a stable value intraday.[\[5\]](#cite-id-lhg5p8oirk)  
  
It launched in the worst week for ETH in 2021, seeing its ‘Basket factor’ drop to 40%. Yet, FLOAT maintained stability throughout. [\[6\]](#cite-id-m3uw5mdunin)  
  
FLOAT is a [decentralized](https://iq.wiki/wiki/decentralized-application) currency backed by a Basket of solid crypto assets, enabling users to escape fiat’s great monetary inflation while achieving low volatility. FLOAT provides a true alternative, necessary for DeFi to maintain the decentralized element which should not be taken for granted. [\[7\]](#cite-id-yhopsod0ly)  
  
FLOAT is one of the few [stablecoins](https://iq.wiki/wiki/stablecoin) in the [DeFi](https://iq.wiki/wiki/defi) space that isn’t chasing a one-dollar peg.  
  
## $BANK Token  
  
‌The $BANK token serves three purposes:  
  
* First to take the profit created in times of excess demand for FLOAT.  
* Second to support the price of FLOAT from time to time.  
* Third to govern the Float protocol.  
  
It is a governance/support token, there is also a deep liquidity pool for BANK to be used as a vital part of the system.  
  
# Team  
  
Float Protocol was built and developed by Abbey road, an anonymous group of hackers who are researchers at the world’s leading institutions.[\[8\]](#cite-id-9996k6yhngs)  
  
> "We chose to be anonymous from day one. Our reasoning is motivated by Satoshi. We want Float Protocol to be bigger than any individual or ego. As such, we adopted four aliases: Paul, John, George, and Ringo, and a team name of Abbey Road Hackers (for those who don’t get the reference, Abbey Road Studios was where the Beatles recorded a lot of their great songs, the name of their 11th album and the backdrop for one of the most iconic images in rock history). The reason we chose to be Abbey Road-themed is pure because of our love for the band and their music. We love the fact that the insular developer can be a rockstar too in their way." [\[9\]](#cite-id-v5nlfra5ama)  
  
# Collaborations and Partnership  
  
Float Protocol has partnered up with many huge companies and organizations for their treasury diversification round including:  
  
* 0xMaki, from [SushiSwap](https://iq.wiki/wiki/sushiswap)  
* Ana Andrianova, Founder and CEO of [Akropolis](https://iq.wiki/wiki/akropolis)  
* Batuhan Dasgin  
* Eden Block is an early-stage blockchain and crypto venture capital firm whose mission is to back the builders of the new Open Internet.  
* Re7 Capital. Re7 provides strategic liquidity into [DeFi](https://iq.wiki/wiki/defi) to shape the financial ecosystem of tomorrow.  
* Freddie Farmer, Yield Farming at Birth, ex-Wintermute  
* Ivailo Jordanov (7percent Ventures)  
* Katya, Angel Investor, and partner at P2P Capital have been focusing on supporting core blockchain infrastructure for the last 5 years. Formerly finance professional in the energy sector.  
* The LAO, a DAO supporting the blockchain ecosystem  
* Lyuben Belov, Founding partner at Launchub Ventures  
* MCV, a for-profit DAO that invests in early-stage Decentralized Applications  
* Santiago R Santos, DeFi Investor  
* Sergei Chan (BlockScience)  
* Stani Kulechov, Founder and CEO of Aave  
* Sunil Srivatsa, Founder and CEO of Saddle Finance  
  
## Float Protocol x Chainlink  
  
Float Protocol partnered with market-leading oracle solution [Chainlink](https://iq.wiki/wiki/chainlink). This integration involves Float Protocol leveraging the widely-used ETH/USD Chainlink Price Feed to power our monetary policy and price stabilization mechanisms.  
  
## Float Protocol x OlympusDAO  
  
Float Protocol partnered with [Olympus DAO](https://iq.wiki/wiki/olympus-dao) to launch their bonds, they celebrated this on Twitter by giving away 10 $BANK to the best meme every week and 100 $FLOAT to a random person that retweeted the winner.  
  
They started $BANK-ETH bonds via the [Olympus DAO](https://iq.wiki/wiki/olympus-dao) platform and also $FLOAT-ETH bonds.

Float Protocol is a Decentralised Monetary System that uses of the $FLOAT token.

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