tFrax: fractional algorithmic stablecoin on TRON.

Intro to Fractional Algorithmic Stablecoin

  • 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.

Decentralized Token Distribution

Community (65% — 65,000,000 FXS)

Team and Investors (35% — 35,000,000 FXS)

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.

Project Details

  1. 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%.
  2. 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)
  3. Token Details:

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