Numerous cryptocurrencies and tokens appear every day. Some of them are of a practical nature, which means they perform some sort of function. Others, on the contrary, have a purely entertainment purpose and may be in demand only due to the strong buzz around the project. RevenueBot has highlighted a few coins to watch out for.
Frax Share (FXS)
FRAX is the world’s first fractional stablecoin, which is partially pegged to the USDC as well as to an algorithmically stabilized Frax Share (FXS) token. Frax Share (FXS) is the governance token of the entire Frax ecosystem of smart contracts which accrues fees, seigniorage revenue, and excess collateral value. That is, FXS is an investment and governance asset, whereas FRAX is a stablecoin equal to $1.
The Frax protocol runs on Ethereum, Avalanche, Fantom, BNB Chain and several other blockchains. 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.
The ratio of secured to algorithmic transactions depends on the market price of the FRAX stablecoin. When FRAX is at or above $1, the function lowers the collateral ratio. But when the price of FRAX is below this mark, the function increases the collateral ratio. In this way its constant price of $1 is maintained.
Lido DAO (LDO)
Lido DAO (LDO) is the governance token of the eponymous project, which ensures its long-term stability and decentralized decision-making to facilitate the growth of an equitable, reliable and transparent liquid rate. By holding an LDO, you get to vote in the Lido DAO.
Lido Finance is a DAO community that creates state-of-the-art liquid rate protocols for staking economy development. Lido lets users to bet on their assets and make daily profits. When you stake, you mint tokens that are pegged to your initial stake by 1:1 ratio. Your staked tokens can also be used in the DeFi ecosystem to generate more revenue.
Lido enables you to use your staked assets to get even more returns. Use your tokens (which help you earn daily rewards for betting activity) as collateral, for lending, farming, and more. The number of this DAO is growing every day, and contributors are working together to build the future of Lido.
API3 (API3)
API3 is the native token of the API3 project, that grants its holders full governance rights in the API3 DAO and acts as collateral in the data feed insurance pool. Staking API3 into the data feed insurance pool earns the staker a governable share of data feed revenues, as well as inflationary staking rewards.
API3 is a collaborative project to deliver traditional API services to smart contract platforms in a decentralized and trust-minimized way. It is governed by a decentralized autonomous organization (DAO), namely the API3 DAO, so its code is open source and DAO’s operations are transparent.
What the project aims to do is build and monetize such processes as how to connect blockchains to existing APIs of data providers. The team basically takes an alternative approach to the so-called “Oracle problem” since it believes there is more the industry can do. Lots of attention is being paid to the project as it builds a brand new decentralized API network (dAPI). API3 has also been called “Chainlink Killer,” a name which also adds up to a great deal of hype for the project.
Conclusion
When investing in new coins, you keep an open mind on all the risks, because the chances of a coin remaining at the same price brackets or depreciating are sky-high.
This material is not a piece of financial advice and is for informational purposes only.
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