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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.
According to the protocol, the preliminary bonds have maturities of July 30, 2024, adopted by Dec. 31, 2024, and Dec. 31, 2026. Bonds value $500K for every maturity are being bought by a gradual Dutch public sale (a technique whereby the value is decreased till a purchaser is discovered).
Over $1.1M of bids have been positioned as of the time of writing.
“FXBs are a approach to purchase future FRAX stablecoins at a specific timestamp for a reduction right now,” mentioned the workforce. Their expectation is that bond yields will mirror U.S Treasury charges for related maturities with the caveat that FXBs “don’t assure that proper, don’t confer any authorized redeemability assumptions (aside from for $FRAX stablecoin tokens).”
At the moment, Frax instructions a $653M market capitalization, rating #102 on Coingecko.
Frax Bonds can be usable throughout DeFi, together with Curve Finance swimming pools, buying and selling pairs which might be searching for leverage, and trustless debt reimbursement.
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.
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