Frax Finance to retire algorithmic backing amid stablecoin crackdown
The vote was passed to fully collateralize Frax Finance's native stablecoin, thus phasing out its algorithmic backing. The community of decentralized finance stable coin protocol Frax Finance has voted to fully collateralize its native stable coin Frax (FRAX), marking an end to the algorithmic backing of the protocol. The FIP-188 governance proposal initially posted on Feb. 15 reached a quorum following a 98% vote in favor, according to a snapshot on Feb. 23 — which would change the collateralization model of FRAX. “The time has come for Frax to gradually remove the algorithmic backing of the protocol,” last week’s proposal read. Near unanimous vote to move $frax to 100% CR over time. Seems like @fraxfinance serious about making it clear it’s a stable worth holding with no incentive and completely backed with exogenous collateral. Will be interesting to see it scale$fxs https://t.co/fSQXpmsge3 — 0xChaos (@0xCha0s) February 23, 2023 It explained that the original protocol incl...