FRAX Integrates With Chainlink Price Feeds for Secured Dealings

FRAX Integrates With Chainlink Price Feeds for Secured Dealings

The FRAX stablecoin has recently upgraded its complete oracle mechanism to integrate with the market’s most popular Chainlink Price Feeds. The stablecoin is based on a novel fractional algorithm protocol. 

The integration with Chainlink Price Feeds will enable FRAX stablecoin to offer greater reliability and security to users interested in minting or redemption of FXS and FRAX being consistently in conformity to the collateral ratio that exhibits the most accurate worldwide market prices. In simpler words, FRAX has a better data infrastructure for maintaining the peg, especially when FRAX scales accordingly. 

The integration includes the use of Chainlink Price Feeds for FRAX/USD andFXS/USD. The reason behind selecting Chainlink as its go-to oracle solution is its time-tested infrastructure and the way it secures a large variety of De-Fi protocols. The current scenario of decentralized finance protocols is quite unexpected for the occurrence of flash crashes, exchanges downtime, and data manipulation attacks. Alongside, it enables the expansion of protocol to different blockchains in the future. 

Reportedly, Frax is closely working with the Chainlink Labs on the FPI (Frax Price Index). It will be possibly the world’s foremost crypto native Consumer Price Index. The FPI will be a combination of Chainlink CPI oracle made for Frax and other crypto indexes. 

The main vision of the FPI is to form the new decentralized unit for stablecoins to peg to and become inflation resistant in greater measure than fiat currencies like the dollar. 

FRAX Upgrade to Chainlink Price Feeds –  Explained 

Frax has aced the fractional – algorithm protocol for stablecoins along with the parts of the supply supported by collateral and chunks of the supply mechanism. Frax’s collateral fluctuates because of the volatile market. If Frax is dealing at $1 or above, the protocol deteriorates the collateral ratio. On the contrary, if Frax is dealing under $1, the collateral ratio increases.

You may also like

Popular News