In the dynamic and often volatile world of cryptocurrencies, stability is what most of us are looking for, especially after coming from a market that reached the catacombs of Hell. Both Balancer (BAL) and FRAX withstood the drops so well that as soon as Bitcoin hit its lowest price, FRAX stayed at $1.69. Currently, when the market has turned red, FRAX is below $1.95, losing 4.67%. FRAX surpassed $2.13 on August 28, being one of the first coins to recover. It shares a price range with BAL and currently with IO.NET, which has just surpassed $11 in March of this year, although its all-time high is $42.

I have reviewed DeFi technology quite well and, as the Spanish say, “it’s awesome”. I don’t have time to talk about them all at the same time, so I decided to start with FRAX, because I see that it has not yet reached the expected rise, in which it should easily return to the $7 it left in the last week of April. FRAX is one of those coins with a low circulation of tokens, being as of today 82 million and its total number of tokens is 90 million, so it does not have much room to devalue.

During the bull market's resounding fall that began in the first week of June, FRAX continued to be one of the ten stablecoins that have been recognized by investors as a solution to mitigate the volatility of crypto assets, which has been driving us all crazy lately.

But who the heck is FRAX as a currency? FRAX is a currency that combines the best of two worlds: the stability of fiat currencies and the decentralization of cryptocurrencies. Unlike other stablecoins that are fully backed by reserves of fiat or cryptocurrencies, FRAX uses a fractional-algorithmic model. This means that it is partially backed by reserves and partially stabilized by algorithms. This hybrid approach allows FRAX to maintain its peg to the US dollar efficiently and with less reliance on external assets.

That was brutally complex, I really want to make myself understood. I will try to be more explicit. I love talking about coins that do not have a loss and in which I invest because it is only a matter of time before they generate profit. If you follow me, you will have noticed that where I put my eye, I put the bullet.

FRAX’s infrastructure (its ecosystem, the place where it exists) has developed a lending platform called “Fraxswap, an automated market maker” (watafak?); and Fraxferry, a system that allows the rich, powerful, institutions and large corporations to make cross-chain value transfers. In other words, it is extremely secure, allows them to access loans, and can be done without the intervention of traditional banking, which is slow and expensive.

For us, the average person, these coins like FRAX are assets where we put our money hoping that they will go up in value so we can make money. In practice, most of us hold dollars, euros or yuan. People who think long-term hold coins like FRAX and use their ecosystem to transfer, obtain and multiply the value of their assets. If we learn to use these platforms, our money will multiply. For now, we only put money in the one that generates the most publicity or the one that is trendy, and that is partly a mistake, because if you just want to hold liquid money, take profits and get out, that's fine, but your money will run out. Just as it is important to diversify digital assets, if you want to make a lot of money you must also diversify your investments in the real world. As my grandmother used to say: "the merchant never lacks money."

To further praise FRAX, they recently implemented FRAXTAL, a layer-2 blockchain designed to improve scalability and transaction efficiency. Fraxtal uses aggregation technology, which bundles and compresses transaction data before sending it back to the Ethereum mainnet. Not only does this reduce transaction costs, but it also improves the speed and capacity of the network, allowing FRAX to handle a higher volume of transactions without compromising security or decentralization.

FRAX governance is also a key aspect of its infrastructure. It uses a decentralized governance system based on the Frax Share (FXS) token. FXS holders have the ability to vote on proposals that affect the protocol, ensuring that the community has a say in the development and future direction of FRAX. This democratic approach not only encourages transparency but also ensures that decisions are made in the best interest of all ecosystem participants.

Furthermore, FRAX has proven to be resilient in times of market volatility, as I said at the beginning of the article. During market downturns, FRAX has maintained its peg to the US dollar, and we do not see our money depreciate. This stability has attracted not only institutional investors, but also small investors like us, who are looking for a safe and reliable currency in this world of cryptocurrencies, which we already know is a carousel that never stops going up and down.

I apologize if the article has been tedious, but believe me, my intention is to get you to sign up with solid and reliable projects. I don't think I'm wrong about FRAX and other coins like BAL, which are part of the DeFi technology and represent one of the most significant innovations in the space of so-called decentralized stablecoins. It is a robust coin that leads, along with ten other coins, the world of cryptocurrencies. FRAX is well positioned to continue being a cornerstone of stability and innovation in this exciting and constantly changing financial landscape. It is waiting for its turn to multiply its capital and, in this way, its price, just as Worldcoin has done today, one of the projects that you, those who read me, know that I have defended with solid arguments.

Jorge Ferrer

Bachelor of Business Administration