• The Frax Price Index, a measure of inflation, will be available on the Partisia blockchain

  • The developers of Frax and Partisia hope to achieve a more complete picture of the current inflation environment by utilizing crowdsourced price oracles.

    Frax Finance, a developer of algorithmic stablecoins, announced on Thursday that the Frax Price Index, or FPI, would be launched on the Partisia blockchain. Frax is first and foremost an ETH/multichain project. Frax is connecting FPI to Partisia’s network in order for Frax to become the primary stablecoin in their ecosystem. The benchmark would be linked to a stablecoin and would compete with the standard Consumer Price Index, or CPI. Although the latter is a nearly universally used inflation gauge, critics claim that its methodology fails to account for items such as housing prices, college tuition, healthcare, and so on, all of which have risen significantly in the United States over the last decade.

    Partisia Blockchain co-founder Brian Gallagher elaborated on the development:

    A variety of crowdsourced demographic purchasing data are converted into trustworthy indexes using Partisia Blockchain’s advanced privacy oracles, allowing FPI to disrupt the non-transparent methods currently used to report inflation data.

    Sam Kazemian, co-founder of Frax, previously said that the FPI stablecoin will have a staking component. As a result, in addition to the core function of performing to the CPI standard, there will be an interest-bearing yield on the FPI, improving the value proposition of a stablecoin pegged to it. “And with the FPI, you can kind of think of it as a commitment to a peg in monetary policy,” Kazemian explained.

    Frax is currently the seventh-largest stablecoin, with a market cap of $1.35 billion, according to CoinGecko. Unlike fiat money stablecoins, algorithmic stablecoins balance funds on the blockchain using smart contracts based on supply and demand rather than reserves.

    What's your reaction?
    Happy0
    Lol0
    Wow0
    Wtf0
    Sad0
    Angry0
    Rip0