Token Velocity: How FRX Token Will Create Value For FRN Holders
FRX is a smart contract that runs on Maker’s StableBits system, which allows crypto holders to generate stable and predictable continuous returns even in the midst of a market downturn.
Finder’s StableBits (FRX) will be an entirely new system that unlocks the demand for stable crypto-asset returns. Our goal is to create a transparent and stable mechanism that allows crypto holders to generate a predictable and consistent income stream in any economic environment, enabling them to further benefit from the crypto asset class. This system is founded on top of Maker’s stablecoin system, MakerDAO (MKR).
FRX, Token Velocity’s proposal for an upgradable CDP contract within the Maker ecosystem, will yield stable returns for FRN holders even in a down market.
We’re so excited to announce FRX — the stable and predictable continuous income vehicle that will benefit all holders of the MakerDAO Protocol.
Through using FRX, holders of the MakerDAO CDP tokens (FRN) will be able to generate income without needing to convert their assets in and out of USD. Instead, they can lock up their DAI assets inside of a FRX contract forever and receive monthly payments backed by ETH.
Fully collateralized stablecoin FRN will generate predictable, low-volatility crypto returns for FRN holders. The token’s liquidity solution, Velocity (ALT), will be used within FRX as a governance token to maintain a stable value for FRN and increase market demand for the underlying CDP portfolio.
Because FRN holders are able to lend their tokens to earn stable returns, they have a built-in incentive to acquire more FRN. This means that the FRN price should rise commensurately. And because of the compound interest feature, the value of a $1 FRN is always higher than the value of $1 in ETH.
Hence, a rational crypto investor would want to diversify — so we expect demand for FRNs to be higher than demand for ETH.
Token Velocity is a series that explores how FRN s are an asset-backed token with no legal or contractual ties to its underlying stablecoin, FRX . Each installment of Token Velocity will explore a different aspect of FRN s to show how they’re designed to help you create value for yourself, whether you hold them or earn them.
The FRX token will be a powerful tool for generating profits for FRN holders. We have done a complete analysis and found the source of value creation. Read on to learn more!
Token Velocity is a first-of-its-kind analysis that shows how the fees generated by ETHLend in its lending business will create value for FRN holders. This analysis shows that no matter what happens to ETHLend’s loan market — even if ETHLend itself were to go bankrupt and dissolve — FRNs are paid out of the fees generated by the system, not from the company’s balance sheet.
Token Velocity, while not being a whitepaper or otherwise technically oriented, is a good example of an investment memorandum. It explains in simple terms how the specific project will create value for holders in the particular token and explains why it is a good investment.
Bitcointalk username: Alessandro Martinez
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TRX wallet addrees: TMf2Ca16L4TR1GXyzF4KFQoGnoukWtCSKS