Why FRAX-Based?

The Blindex protocol is derived from FRAX and it's our intention to show our respect for the great work they've done by submitting a governance proposal (once the governance is sufficiently decentralized) to allocate some BDX tokens to the FRAX team. Here's a short summary of what makes it so unique and groundbreaking:
Fractional-Algorithmic – FRAX is the first and only stablecoin with parts of its supply backed by collateral and parts of the supply algorithmic. This means it is the first stablecoin to have part of its supply floating/unbacked. The ratio of collateralized and algorithmic depends on the market's pricing of the stablecoin. If the stablecoin is trading at above $1, the protocol decreases the collateral ratio. If the stablecoin is trading at under $1, the protocol increases the collateral ratio. 
Decentralized & Governance-minimized – Community governed and emphasizing a highly autonomous, algorithmic approach with no active management. 
Fully on-chain oracles – Frax uses Uniswap (ETH, USDT, USDC time-weighted average prices) and Chainlink (USD price) oracles. 
​
Last modified 1yr ago