New Frax Stablecoin Project To Be Supported By Trump And Reagan Staffers

The new Frax stablecoin project by the former federal reserve nominee Stephen Moore will be supported by Ralph Benko who is now a former deputy general counsel for Reagan as we are reading further in the altcoin news today.

Moore is the co-founder of the new Frax stablecoin along with Sam KAzemian who also co-founded Everipedia. Benko will now be the general counsel. Frax is a stablecoin that is set to launch early next year which is built on a decentralized fractional reserve system which is a type of banking system where the banks can loan out customer funds and only hold a small proportion of the funds on-site for the customers to withdraw. Unlike other banks that hold fiat currencies, Frax’s reserve assets will be the Frax tokens which are a stablecoin that tracks the dollar but is not really backed by it. The protocol of the coin hopes to use existing DeFi products such as compound finance and dYdX to loan the DAI and Tether tokens as collateral and will also adjust the price of interest payments to make adjustments to the value of the currency.

The new interest payments will go back into the Frax smart contact which buys back or will rebalance the supply of Frax in the market to keep each Frax token at $1. In order to reduce further risks, Frax was previously called Decentral Bank and will not hold close to 100 percent of the funds in the reserves when it launches and will also slowly hold fewer funds in its reserves as the network becomes much more popular. Frax says that the new tokens will be held in a non-custodial manner on the blockchain making sure that the confidentiality is present over how the funds are spent. Unlike Facebook’s stablecoin project-Libra, the power is evenly distributed between more than twenty companies. Frax, on the other hand, is completely decentralized but the bigger goal according to Moore is to end the world’s dependence on the FED-controlled US dollar. The project is expected to make a blast on the market and there are plenty of enthusiasts that are extremely happy for the new project.