> For the complete documentation index, see [llms.txt](https://docs.blindex.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.blindex.io/quick-intro/stability.md). # Stability This is the complex/interesting part. First of all, we’re deriving from the great work done by the FRAX team, who managed to build very robust foundations for a partially collateralized, algorithmic stablecoin. We’ve added some additional logic to support multiple fiat currencies and not just USD, as well as changed the collateral to be only fully decentralised BTC & ETH. The stability is algorithmically achieved by the combination and constant adjustment of multiple factors, such as collateral ratio, collateral and buffer pricing, and market trust. We've also refined some of the redemption mechanisms in order to remove any incentivize for a "bank run" and have a fairer collateral distribution upon redemption. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.blindex.io/quick-intro/stability.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.