Cryptocurrency Q&A
How to mint FRAX?
How to mint FRAX?
isabella_oliver_musician
Wed Jun 26 2024
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5 answers
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Could you elaborate on the process of minting FRAX? I'm particularly interested in understanding the steps required and any prerequisites that may be necessary. For instance, do I need to have a certain amount of collateral? Is there a specific platform or wallet I should use? Also, how long does the process typically take? Additionally, what are the risks involved in minting FRAX, and how can I mitigate those risks? Your insights would be greatly appreciated as I'm considering adding FRAX to my cryptocurrency portfolio.
5 answers
CryptoEnthusiast
Fri Jun 28 2024
Additionally, $0.15 worth of $FXS, the governance token of the Frax Protocol, is also required as part of the minting process.
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KimonoGlory
Fri Jun 28 2024
Conversely, when redeeming $FRAX, users receive the equivalent value in $USDC and $FXS.
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Nicola
Fri Jun 28 2024
The seigniorage model of stablecoin functions as a mechanism to maintain the stability of the digital currency.
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Valentina
Fri Jun 28 2024
For every $1 of $FRAX redeemed, $0.85 worth of $USDC is returned to the user, along with $0.15 worth of $FXS.
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KatanaSwordsmanshipSkill
Fri Jun 28 2024
Specifically, in the case of $FRAX, this model requires a deposit of $0.85 worth of $USDC (or another accepted collateral) for every $1 of $FRAX minted.
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