Frax Finance (FXS) Launches veFPIS Staking: What Does This Mean?
Frax Finance (FXS), a conglomerate of crypto products and the organization behind FRAX hybrid stablecoin, unlocks novel opportunities for stakers; experienced traders are already exploring them.
More utility for FPIS governance token: veFPIS staking goes live
Cryptocurrency researcher @0xpibblez noticed yesterday, on Feb. 14, 2023, that Frax Finance (FXS) has activated a new staking program. Holders of FPIS, the governance asset behind Frax Price Index (FPI) token, can now participate in veFPIS staking.
.@fraxfinance quietly put out some details on upcoming utility to FPIS, the gov token for its FPI stablecoin.
veFPIS staking is coming 2/20
I wonder how much excess value is waiting in the FCR to be distributed to veFPIS stakers 👀 pic.twitter.com/iUp86LNGy2
— pibblez🟪 (@0xpibblez) February 14, 2023
veFPIS staking will be available from Feb. 20, 2023. FPIS and veFPIS utility will be associated with the mechanism of The Frax Collateral Ratio (FCR). This indicator is a ratio of FRAX stablecoins directly backing FPI assets.
Thanks to the dynamic and flexible architecture of the mechanism, any extra economic productivity (value generated by the protocol itself) will be distributed between FPIS holders.
Twitter user @0xpibblez mentioned that some accounts have already started accumulating FPIS tokens in hopes of future benefits.
FPIS price rocketing on upcoming staking launch
In the last 24 hours, the price of Frax Price Index Share (FPIS) surged from $1.8 to $2.3. The token that is only available on Fraxswap, Uniswap (UNI) and BKEX platforms has posted its most aggressive price increase in many months, gaining almost 25% in a few hours.
Two other tokens of the Frax Finance (FXS) ecosystem are also in the green zone: while Frax Share (FXS) is up 10%, Frax Price Index (FPI) added 1.5% in the last 24 hours.
As covered by U.Today previously, Frax Finance (FXS) is among the most promising and trending DeFi ecosystems in 2023; it offers a unique “fractionally backed” stablecoin and native on-chain yield products.