Frankencoin
Protocol
Protocol
Collateralized, oracle-free stablecoin that tracks the value of the Swiss franc.
Its strengths are its decentralization and its versatility.
Join Frankencoin
Landing Page to get a quick overview of the project and the ecosystem
Frankencoin Pay is available for testers to gain initial experience.
Includes WFPS wrapper, general swap & bridge (app only) function and provision of collateral to easily take a loan in ZCHF with pre-configured positions
Connect your Frankencoin Wallet to your mobile number and send and receive money to your phone number
Onboarding first merchants in Switzerland
Evaluate existing debts and develop a plan to manage and reduce them.
Evaluate existing debts and develop a plan to manage and reduce them.
Connect your wallet and pay contactless at all Frankencoin merchants
Store recurring payments for your subscriptions.
Higher capital efficiency
From a bird's eye perspective, the Frankencoin system resembles a bank that creates money against collateral. In the traditional banking system, this can for example be done with real estate. The bank accepts a house as collateral, and prints the agreed amount of money by adding it to that persons bank account. Then the buyer of the house can transfer the money to the seller, where it ends up as a deposit with maybe the same or another bank, thereby closing the circle. When doing so, banks need to observe some reserve and other legal requirements to ensure the mortgage is well-secured. The Frankencoin system essentially enables users to do the same, printing some money against a (hopefully) valuable collateral. Also, like a bank, the Frankencoin system has a reserve pool that resembles the equity capital of a bank and serves as a buffer to absorb risks. However, in contrast to a bank, there is nothing that qualifies as credit as the users print their money themselves, processes are largely automated and fully transparent, and there is no explicit governance besides a veto mechanism that is open for everyone with enough pool shares.
If used with the necessary care, most definitely. Most of the usefulness of the Frankencoin comes from its decentralized nature. It is open, fully transparent, and freely interactible by humans and software alike. Thanks to its transparency, anyone can analyze its solvency at any moment. If it is in imbalance, it can be expected to be attacked by speculators who know exactly at which market prices the Frankencoin is not fully backed any more. The goal is not to imitate traditional banking, the goal is to create something immanently better.
The primary objective of the Frankencoin is to establish a decentralized financial system that enables individuals to generate currency backed by collateral, akin to traditional banking practices. This initiative is driven by a commitment to transparency, decentralization, and inclusivity, aiming to empower users with the ability to mint their own Swiss Francs. By decentralizing the process of money creation, Frankencoin seeks to foster economic resilience and provide an alternative to conventional centralized financial frameworks.
Frankencoin sets itself apart from other stablecoins by employing an auction-based system for collateral determination, eliminating the need for external oracles. This approach prevents price manipulation by switching collateral assets during auctions, ensuring system integrity without relying on third-party sources. Additionally, its emphasis on collateral availability enables ongoing challengeability, while autonomous operation reduces owner intervention. Equity holders bear losses in case of insufficient auction proceeds, ensuring robust risk management within the system.
FPS tokens represent ownership in the equity reserve pool of the Frankencoin system, functioning like shares in a bank. They enable holders to earn profits from system fees, participate in governance through voting rights, and provide liquidity by minting and redeeming tokens. FPS tokens play a crucial role in maintaining stability, governance, and value creation within the Frankencoin ecosystem. Read more here: https://docs.frankencoin.com/reserve/pool-shares#reserve-pool-shares
The Frankencoin Pool Shares (FPS) represent a share in the equity capital of the system. The FPS holders get the profits (earned interests and fees) from the system, but are also covering the residual liquidation risk. Furthermore, FPS token holders accumulate voting power over time. Any FPS holder that has 2% of the votes - alone or together with others - can veto proposals.
Frankencoin offers a stablecoin pegged to the Swiss franc, preserving purchasing power and providing an alternative to existing stablecoin models. Additionally, it allows users to leverage assets like BTC and ETH to mine new Frankencoins or invest in the future of the project through FPS tokens.
Option 1:
Step 1: Download the Frankencoin App
Step
2: Click on deposit/buy
Step 3: Either choose FPS on ETH or WFPS on Polygon
Step 4: Pay via bank wire or credit card with Apple and Google Pay
Option 2:
Step 1: It’s possible to use the following website: https://frankencoin.dfx.swiss/
Step 2: Connect with Metamask
Step 3: Either choose FPS on ETH or WFPS on Polygon
Step 4: Pay via bank wire or credit card with Apple and Google Pay
Option 3:
Via Uniswap (ZCHF to FPS/FPS)
Option 4:
Polygon: Via Uniswap (ZCHF to WFPS)
Tip: Due to fees it might be better to use Polygon if the value is below USD 1k.
FPS are not locked. FPS can be transferred at any time. FPS can also be sold at any time. FPS can be exchanged for WFPS and sold via uniswap. All this is possible and there is no lock. If you want to destroy FPS with the SmartContract, these FPS must be at least 3 months old. However, this is not a sale but a destruction of the FPS. After that, these FPS no longer exist and the quantity in circulation of all FPS has decreased.
No, it neither qualifies formally nor functionally as a security. It does not qualify formally as a security under Swiss law as it does not represent a claim towards an issuer. Also, it does not qualify functionally as a security as it does not serve a financing purpose.
Yes, to some extent. The Frankencoin addresses issues within the current system of money creation, highlighting how it distorts capital allocation. For example, regulatory constraints may incentivize investments that aren't optimal for society. Traditional capital requirements tend to favor certain sectors like real estate and government bonds over others. By leveraging blockchain technology, Frankencoin offers an alternative outside the traditional financial system. It seeks to empower individuals by allowing them to create their own money, potentially leading to a stronger economy and more growth if used responsibly.
.svg){kind=small}