tFrax: fractional algorithmic stablecoin on TRON.
Tronfi Team aims to bring the best projects on TRON network. tFrax.com is a forked project of the recent popular Frax project on ETH. First Pool starts on 2021–02–13 14:00 UTC Time.
Intro to Fractional Algorithmic Stablecoin
Fractional-Algorithmic — TRA is the first and only stablecoin with parts of its supply backed by collateral and parts of the supply algorithmic on TRON. The stablecoin (TRA) is named after the “fractional-algorithmic” stability mechanism. The ratio of collateralized and algorithmic depends on the market’s pricing of the TRA stablecoin. If TRA is trading at above $1, the protocol decreases the collateral ratio. If TRA is trading at under $1, the protocol increases the collateral ratio.
- Decentralized & Governance-minimized — Community governed and emphasizing a highly autonomous, algorithmic approach with no active management.
- Fully on-chain oracles — tFrax v1 uses sSwap (time-weighted average prices) oracle.
- Two Tokens — TRA is the stablecoin targeting a tight band around $1/coin. tFrax Shares (TRS) is the governance token which accrues fees, seigniorage revenue, and excess collateral value.
- Swap-based Monetary Policy —t Frax uses principles from automated market makers like sSwap to create swap-based price discovery and real-time stabilization incentives through arbitrage.
To know more about what is fractional algorithmic stablcoin, you can read the details here: https://docs.frax.finance/.
Decentralized Token Distribution
The main improvement of the tFrax project over the original one lies on the original token distribution of the governance token (TRS).
While Frax.finance held an ICO of their FXS token, their FXS distribution is:
Community (65% — 65,000,000 FXS)
60% — Liquidity Programs / Farming / Community — 40 months, up to over half released in the first 12 months
5% — Project Treasury / Grants / Partnerships / Security-Bug-Bounties — via Team and Community discretion
Team and Investors (35% — 35,000,000 FXS)
20% — Team / Founders / Early Project Members — 12 months, 6 month cliff
3% — Strategic Advisors / Outside Early Contributors — 36 months
12% — Accredited Private Investors — 2% unlocked at launch, 5% vested over the first 6 months, 5% vested over 1 year with a 6 month cliff
tFrax has no pre-allocated team nor investor shares, 100% TRS token will be distributed via liquidity program. Team will only add 5% tax on the staking rewards.
- Collateral Ratio (CR): The stablecoin, TRA, will be pegged to 1 USDt, to add more stability to the project, the Price Band setting will be 0.005 USDt, meaning, if TRA < 0.995 USDt, the collateral ratio (CR) will be increased. If TRA > 1.005 USDt, the collateral ratio (CR) will be decreased. Each hour, the CR will be at most adjusted once, the Adjust Step is 0.25%. The price used is 5-min time weighted price oracle of sSwap. Until TRS/TRA pool is launched, CR will be locked at 100%.
- Fee: mint, redeem, buyback, re-recollateralization fee are 0.3%. 30% of the fee collected stay in the mint pool as collateral. 70% of the fee will be used as staking reward to the Tron community. (details reveal later)
- Token Details:
TRA, the stablecoin, the pool maximum is currently set to 20m USDt. (can be changed later via community vote) a.k.a only 20m PAR will be minted.
TRS, the share token, total supply at 30m, all distributed via liquidity Programs / Farming / Community — 40 months, up to over half released in the first 12 months.
TRA-USDT sSwap Pool 50% 2021–02–13 14:00 UTC
TRS-TRA sSwap Pool 50% 2021–02–15 14:00 UTC
4. Community Reward Pools (2021–02–15 14:00 UTC)
To enrich more people to join, we will share 70% of the mint/redeem fees to tron communities via YFI-like rewards pools.
Each day we will send previous day’s fee to the staking pools, the staking reward will be calculated based on staking amount and staking time.
Pearl, Tai, SAN, TBC, TBS, TRS
WTRX, JST, WBTT, SUN
while Pearl and TRS will have a 3x weight, all other pools have 1x weight.