FXB tokens are bought at a reduction and upon maturity may be trustlessly redeemed for FRAX at face worth.
Frax Finance, the multifaceted stablecoin protocol, has launched Frax Bonds (FXB), a utility token that trustlessly converts to 1 FRAX stablecoin upon expiration.
This launch marks the completion of the Frax v3 roadmap, deploying all of its new options.
Beneath the settlement, the preliminary bond maturities are July 30, 2024, December 31, 2024 and December 31, 2026. The bonds, price $500,000 per maturity, might be auctioned by way of a progressive Dutch public sale (a way through which costs are lowered till a purchaser is discovered).
As of this writing, greater than $1.1 million in bids have been issued.
“FXB is a option to buy future FRAX stablecoins at a reduction at a selected timestamp,” the group mentioned. Their expectation is that bond yields will mirror U.S. Treasury charges of comparable maturities, but it surely’s necessary to notice that FXB “ This proper is just not assured and no authorized assumption of redeemability is conferred (apart from $FRAX stablecoin tokens).”
At the moment, Frax has a market capitalization of $653 million and ranks 102nd on Coingecko.
Frax Bonds might be accessible throughout DeFi, together with Curve Finance swimming pools, buying and selling pairs in search of leverage, and trustless debt reimbursement.
The neighborhood behind the stablecoin protocol voted in late December to deploy $20 million in collateral to U.S. Treasuries. It companions with Centrifuge, an rising chief in RWA.
