Offered at a reduction, FXB tokens may be trustlessly redeemed for FRAX at par upon maturity.
Frax Finance, the multifaceted stablecoin protocol, has unveiled Frax Bonds (FXB), a utility token that converts into 1 FRAX stablecoin trustlessly upon maturity.
The launch marks the completion of Frax’s v3 roadmap, deploying all its new options.
In accordance with the protocol, the preliminary bonds have maturities of July 30, 2024, adopted by Dec. 31, 2024, and Dec. 31, 2026. Bonds price $500K for every maturity are being offered by way of a gradual Dutch public sale (a way whereby the value is diminished till a purchaser is discovered).
Over $1.1M of bids have been positioned as of the time of writing.
“FXBs are a means to purchase future FRAX stablecoins at a selected timestamp for a reduction at present,” stated the staff. Their expectation is that bond yields will mirror U.S Treasury charges for comparable maturities with the caveat that FXBs “don’t assure that proper, don’t confer any authorized redeemability assumptions (apart from for $FRAX stablecoin tokens).”
Presently, Frax instructions a $653M market capitalization, rating #102 on Coingecko.
Frax Bonds will probably be usable throughout DeFi, together with Curve Finance swimming pools, buying and selling pairs which can be on the lookout for leverage, and trustless debt compensation.
The group behind the stablecoin protocol voted in late December to deploy $20M of its collateral to U.S. Treasuries. It partnered with Centrifuge, an rising chief within the RWA house.
