Dear CoinEx users,
To provide you with more trading options, after rigorous reviews, CoinEx will list FXS and support deposit and withdrawal & Automated Market Making (AMM) on August 30, 2021 (UTC). And its trading pair FXS/USDT will be available on the same day.
1. Deposit: 07:00 August 30 (UTC)
2. Withdrawal: 07:00 August 30 (UTC)
3. Trading pair: FXS/USDT
4. Opening method: Call Auction
a. Call Auction
07:00-10:50 August 30, 2021 (UTC)
Orders can be placed and canceled
10:50-11:00 August 30, 2021 (UTC)
Orders can be placed but cannot be canceled
Frax is a fractional-algorithmic stablecoin protocol. Frax is open-source, permissionless, and entirely on-chain. The end goal of the Frax protocol is to provide a highly scalable, decentralized, algorithmic money in place of fixed-supply digital assets like BTC.
Frax is a new paradigm in stablecoin design. Its features are:
1. Fractional-Algorithmic: Frax is a stablecoin with parts of its supply backed by collateral and parts of the supply algorithmic. This means FRAX is the stablecoin to have part of its supply floating/unbacked. The stablecoin (FRAX) is named after the "fractional-algorithmic" stability mechanism. The ratio of collateralized and algorithmic depends on the market's pricing of the FRAX stablecoin. If FRAX is trading at above $1, the protocol decreases the collateral ratio. If FRAX is trading at under $1, the protocol increases the collateral ratio.
2. Decentralized & Governance-minimized: Community governed and emphasizing a highly autonomous, algorithmic approach with no active management.
3. Fully on-chain oracles: Frax v1 uses Uniswap (ETH, USDT, USDC time-weighted average prices) and Chainlink (USD price) oracles.
4. Two Tokens: FRAX is the stablecoin targeting a tight band around $1/coin. Frax Shares (FXS) is the governance token which accrues fees, seigniorage revenue, and excess collateral value.
The Frax Share token (FXS) is the non-stable, utility token in the protocol. It is meant to be volatile and hold rights to governance and all utility of the system.
What is Automated Market Making (AMM)?
Automated market making (AMM) can calculate the buying and selling price according to the formula, so as to provide a continuous quotation for the market. CoinEx combines AMM with the order book, which means the liquidity pool will be automatically converted into the order book. With the "constant product market maker formula" algorithm in AMM, no matter how large the order book is or how small the liquidity pool is, firm liquidity provision to the market can be guaranteed. Learn more
Fees and Profit
Market supporting automated market making is an AMM market. Compared with normal market, AMM market adopts an independent fees system. The fees for both marker and taker is 0.3%, for market makers is 0.15%. VIP will not enjoy any special fees, and using CET for fees deduction is unavailable. All users are qualified to apply for market makers, and 50% of the market's transaction fees will be rewarded to liquidity providers.
Characteristics of AMM
1. Bonus obtainable from automated market making
User’s provided liquidity will be injected into the pool for automated market making. 50% of the market's transaction fees will be rewarded to liquidity providers in terms of the corresponding pool proportion.
2. Daily bonus can be cumulatively withdrawn
The transaction fee bonus will be calculated once a day and automatically credited into the user's Market Making Account before 4:00 (UTC) the next day. The user can obtain all the accumulated fee bonus after removing liquidity.
3. Free access, no charge required
Assets between Spot Account and Market Making Account can be transferred in real-time by adding and removing liquidity. Each user in a single market can increase liquidity twice a day, and no fees will be charged during the operation.
The assets in the Market Making Account will be injected Into the liquidity pool for automated market making. When the price fluctuates, there will be impermanent losses, and the amount of the two assets will change when the liquidity is removed. More details about impermanent losses
August 30, 2021