Frax Finance Launches Frax Price Index on Patrisia Blockchain: Details
Frax Price Index works like Consumer Price Index (CPI) but for blockchain segment, goes live on novel Web3 platform Patrisia
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Crypto start-up Frax Finance launches two novel products on high-performance blockchain Patrisia that pioneers multi-party computation in decentralized finance.
New inflation metric launches on blockchain
According to the joint official announcement shared by Frax Finance and Patrisia Blockchain, the two teams inked a strategic partnership. Within its framework, two novel products will go live on the Patrisia platform.
Frax Price Index is the first one. It is promoted as a more fair and comprehensive alternative to the Consumer Price Index (CPI), a popular indicator of inflation.
While CPI does not reflect the actual dynamics of inflation, its current methodology also poses privacy issues as it implies longitude tracking of consumer behavior.
Frax Price Index will not only consider the inflation of previously unexplored assets but also the upsurge of prices for healthcare, social programs and numerous other expenses.
Where MPC meets DLT: What is Patrisia Blockchain?
Besides that, Patrisia blockchain will be the technical basis for FRAX, a novel algorithmic stablecoin by Frax Finance, which is a decentralized alternative to mainstream USD-pegged stablecoins like USDT and USDC.
Brian Gallagher, co-founder at Patrisia Blockchain, stresses that his product will be the reliable technical basis for both novel products by Frax Finance:
We chose to work with Frax Finance to integrate their algorithmic stable coin, because the technology is advancing beyond a pegged USD stable coin and uses a demand-supply curve where users minting and redeeming FRAX keeps the price stabilized.Together with Partisia Blockchain’s advanced privacy oracles, a variety of crowdsourced demographic purchasing data are converted into trustworthy indexes enabling FPI to disrupt the non-transparent methods so far used to report inflation data.
Travis Moore, co-founder of Frax Finance, is fascinated by the level of privacy accomplished by Patrisia technology:
Partnering with Partisia Blockchain allows the Frax protocol to access cutting edge privacy protection technology. This enables us to build out the Frax Price Index with a high degree of privacy protection.
Patrisia is the first-ever blockchain that merges the benefits of multi-party computation—a unique design of node architecture—and distributed ledger technology.
