Persia “Reserve Currency for Persia Dao” Adopts FRAX As SOLE Treasury Assets.
Persia
Persia is a decentralized reserve currency protocol which will initially be available on the Bsc (Binance Chain Network) and will expand to other chains in future which will make it multichain based on the Persia token. Each Persia token is backed by a FRAX in the Persia treasury, giving it an intrinsic value that it cannot fall below. Persia also introduces unique economic and game-theoretic dynamics into the market through staking and bonding.
Also, FRAX will be acceptable currency for Persia DAO presale. Persia DAO will be conducting their presale on ANYPAD and users who will be contributing in Persia Dao Token sale can contribute using FRAX (bsc network).
Why Chosen FRAX?
FRAX is more decentralized than all of the other major stablecoins, and it’s first algorithmic stablecoin that has maintained its peg since launch. It is also more capital efficient. All the centralized stablecoins will fall under regulations and KYC to whoever uses them and PersiaDAO is fully decentralized, so we think FRAX serve a great purpose of decentralization on our protocol.
FRAX decentralization will allow everyone using our protocol to have full control of their funds without the fear of regulations. Regulators are the biggest pressure on stablecoin protocols, USDT and USDC are centralized and if someone high-up tells them to blacklist anyone’s funds, they will do it to complete with regulations but in the case of FRAX, such issue won’t be possible.
Many might ask why do we choose FRAX that is partially or has no backing when they can use other fully backed stablecoins. From the supply side, FRAX is more capital efficient. Even though many think that fully backed stablecoins are better but that’s not how free markets work. The shortage of some big backed cash would manifest in ridiculously high borrow rates, inefficient loans, and wasted collateral. While lower backed coins like FRAX is cheaper to use.
Since FRAX was launched, it has changed how a lot of projects think about algorithmic stablecoins and it has never broken its peg.
Frax team introduced DeFi to the concept of a fractional-algorithmic stablecoin. The market sets the collateral ratio (CR). When FRAX is $1.01 the CR lowers. When the price of FRAX is $.99 the CR increases. The ratio of collateralized to unbacked FRAX is set by market forces.
And when the market is clamouring for FRAX and price is $1.01, they use this as input to lower CR. All seigniorage, fees, and excess collateral goes to the governance token Frax Shares ($FXS). FRAX is also minted on the other side for collateral to increase the CR when FRAX is $.99.
Frax Finance concept allows the protocol to ask the market "just how much supply of money are you ok with being unbacked?" The market responds collectively through the price of FRAX. So it’s essentially a democratic way of voting for the capital requirement of the Fed/banks.
Frax Finance team also launched their v2, where they introduced the concept of algorithmic market operations (AMOs) which allows the protocol to do anything with new FRAX and collateral as long as the market doesn’t respond by pricing FRAX at $.99. That’s the market responding and saying "don’t do that any more."
Frax Finance AMOs are the Turing-complete and final state of "protocol controlled value." They can literally do anything with AMOs like mint FRAX into some DeFi protocols for cheaper rates than any other stablecoin.
As a result of FRAX capital efficiency, FRAX stablecoin is one of the largest collateral lenders on Compound Finance, and as well as the #1 user of Yearn Finance USDC vault, and FRAX growth has been growing day by day.
Many projects such as TempleDAO, RomeDAO etc are now using FRAX and with FRAX capital efficiency, more protocol will use FRAX as their stablecoin of choice. PersiaDAO is now planning to use FRAX.
Persia Dao Value Proposition
Persia DAO is a fair, community-governed, financial infrastructure for the Persia Dao that allows for stable and dependable growth.
Persia Dao Protocol
Pesria Dao Protocol has chosen to operate on Binance Smart Chain because we believe BSC represents the optimal intersection between the real world and the Defi Need.
Whenever one thinks about DeFi 2.0, OlympusDAO immediately comes to mind because they not only created an entirely new operating model, but made it exceedingly dependable. Persia Dao is a similarly dependable endeavour. The bond protocol assists new DeFi platforms with securing liquidity, allowing them to achieve steady growth in their early stages.
PersiaDao doesn’t simply earn from the application layer (Bonds, LP), but the expected dramatic growth in the sector overall will also be a major boon for platform, with assets held in the treasury not sold but held and allowed to appreciate and further back the rebase of Persia. This makes HODLing the primary goal.
Our goal is not to find a stable price. This may seem antithetical to our currency aspirations, but we ensure you it is not. Persia can be tuned to optimize for different things. The main tradeoff is volatility and profitability versus stability and consistency. With volatility and profit comes growth; this is what we want early on.
With tight policy and scale, Persia should function well as a stable asset. Upward and downward pressures should stabilize at some non-intrinsic value. With loose policy, regardless of scale, Persia has the potential to act as a wealth creation machine. The market premium of the token measures the positive sum of the game; all extrinsic value is new wealth created.
About Persia DAO
Persia is building a stable currency backed by multiple assets or a decentralized infrastructure Owned & Governed by the Persian community. The Persia stable currency is valued algorithmically backed by a wide range of market leading stable currencies paving ways for an anti-bear solution.
Persia is an asset underwritten and backed by a wide range established industrialized stable coins such as “FRAX” followed by the LP assets. The smart contracts and codes driving Persia are carefully vetted, verified, and submitted towards trustworthy auditing institutions to maintain its transparency. All the primary and secondary decisions made within the platform regarding the assets, bonding and staking would completely be governed by the community.
About Frax Finance
Frax is the first fractional-algorithmic stablecoin protocol. Frax is open-source, permissionless, and entirely on-chain – currently implemented on Ethereum and other chains. 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. It brings together familiar concepts into a never before seen protocol:
- Fractional-Algorithmic – Frax is the first and only stablecoin with parts of its supply backed by collateral and parts of the supply algorithmic. This means FRAX is the first 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.
- Decentralized & Governance-minimized – Community governed and emphasizing a highly autonomous, algorithmic approach with no active management.
- Fully on-chain oracles – Frax v1 uses Uniswap (ETH, USDT, USDC time-weighted average prices) and Chainlink (USD price) oracles.
- 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.
- Crypto Native CPI – Frax’s end vision is to build the first crypto native version of the CPI called the Frax Price Index (FPI) governed by FXS holders (and other protocol tokens). FRAX is currently pegged to USD but aspires to become the first decentralized, permissionless native unit of account which holds standard of living stable.
