Frankencoin
Collateralized, oracle-free stablecoin that tracks the value of the Swiss franc. Its strengths are its decentralization and its versatility.
Choose Your Use Case
The Three Core Functions
The Frankencoin Token
Frankencoin (ZCHF) is an ERC-20 token on Ethereum mainnet and bridges to relevant other chains.
Chain
Ethereum
Total Supply
9'139'371 ZCHF
Swap onchain
Buy with fiat
Chain
Polygon
Bridge
Total Supply
606'457 ZCHF
Swap onchain
Buy with fiat
Chain
Arbitrum
Bridge
Total Supply
22'246 ZCHF
Swap onchain
Buy with fiat
Chain
Optimism
Bridge
Total Supply
136'965 ZCHF
Swap onchain
Buy with fiat
Chain
Base
Bridge
Total Supply
1'117 ZCHF
Swap onchain
Buy with fiat
Frankencoin System Explained
Discover the possibilities of the protocol for yourself, either as a saver, user or investor.
Mint
Sell
1. Mint.
Anyone can deposit a suitable collateral and mint Frankencoins. These Frankencoins have to be returned before you can get your collateral back.
2. Fees.
When minting Frankencoins, a fee is paid to the equity reserve pool.
Sell
Spend
3. Sell.
The minter sells the Frankencoins for 1 CHF each in the market.
Spend
Save
4. Buy.
Someone else buys some Frankencoins from Uniswap or other market places.
5. Pay.
Frankencoins can be used to make Swiss franc payments in DeFi or elsewhere.
6. Sell.
Recipients can sell their Frankencoins again on the market.
Save
Invest
7. Buy.
Someone who is interested in saving Swiss francs might buy some Frankencoins.
8. Save.
And then commit to lock them up in the system for a chosen period of time.
9. Interest.
In return, the saver gets an interest that is paid out of the equity reserve pool.
Invest
Mint
10. Buy FPS.
Other might want to buy in order to speculate on the success of the whole system.
11. Add capital.
When adding capital to the equity reserve pool, you get freshly minted Frankencoin Pool Shares (FPS) in return. The amount of FPS is calculated using a bonding curve with the invariant "Market Cap = FPS Supply * FPS Price = 3 * Equity Reserve Pool", minus 0.3% issuance fee.
12. FPS appreciation or depreciation.
After a minimum holding duration of three months, the FPS can be returned to the system at the current price, minus 0.3% redemption fee.
1. Mint.
Anyone can deposit a suitable collateral and mint Frankencoins. These Frankencoins have to be returned before you can get your collateral back.
2. Fees.
When minting Frankencoins, a fee is paid to the equity reserve pool.
3. Sell.
The minter sells the Frankencoins for 1 CHF each in the market.
4. Buy.
Someone else buys some Frankencoins from Uniswap or other market places.
5. Pay.
Frankencoins can be used to make Swiss franc payments in DeFi or elsewhere.
6. Sell.
Recipients can sell sell their Frankencoins again on the market.
7. Buy.
Someone who is interested in saving Swiss francs might buy some Frankencoins.
8. Save.
And then commit to lock them up in the system for a chosen period of time.
9. Interest.
In return, the saver gets an interest that is paid out of the equity reserve pool.
10. Buy FPS.
Investors might want to buy FPS in order to speculate on the success of the whole system.
11. Add capital.
When adding capital to the equity reserve pool, you get freshly printed Frankencoin Pool Shares (FPS) in return. The amount of FPS is calculated using a bonding curve with the invariant "Market Cap = FPS Supply * FPS Price = 3 * Equity Reserve Pool", minus 0.3% issuance fee.
12. FPS appreciation or depreciation.
After a minimum holding duration of three months, the FPS can be returned to the system at the current price, minus 0.3% redemption fee.
Wallets, Exchanges, Companies
Ecosystem
On- and off-ramps, Apps, Providers of Tokenization of shares, Bridges and Merchants bring the Frankencoin ecosystem to life.
Learn more
Token Classification
The Frankencoin (ZCHF) has been classified as a payment token under Swiss law, and the Frankencoin Pool Share (FPS) as a utility token. European and other classifications are pending. For more information, please read the memorandum.
Publicly Verifiable
Code Audits
Audited by the leading security firms, security of Frankencoin is the highest priority.
Q&A
What is this all about?

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.

Is the Frankencoin ecosystem useful?

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.

What is the main goal of the Frankencoin ?

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, empowers users with the ability to mint their own Swiss Francs. By decentralizing the process of money creation, Frankencoin builds economic resilience and provides an alternative to conventional, centralized financial frameworks.

How does Frankencoin differ from other stablecoins?

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.

What are FPS tokens?

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.

What role do governance token holders play in the Frankencoin ecosystem?

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.

What opportunities does Frankencoin offer for preserving purchasing power and investment?

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.

How can individuals invest in the FPS tokens of the Frankencoin ecosystem?

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: Head over to https://app.frankencoin.com/equity​
Step 2: Connect your wallet
Step 3: Choose what you would like to trade (ZCHF, FPS or WFPS)
Step 4: Choose the target asset
Step 5: Mint new FPS or redeem your FPS. Observe the minimum holding time of 3 months before FPS can be redeemed

Option 3:

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 4:
Via Uniswap (ZCHF to FPS/FPS)



Option 5:
Polygon: Via Uniswap (ZCHF to WFPS)

‍

Tip: Due to fees it might be better to use Polygon if the value is below 1 000 ZCHF.

How long is the locking period for FPS?

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. However, if you want to redeem FPS with the SmartContract, these FPS must be at least 3 months old. Note that 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.

Is the Frankencoin a security?

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. This has been confirmed by the reputable Swiss law firm LEXR.

Is Frankencoin a political coin?

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 empowers individuals by allowing them to create their own money, potentially leading to a stronger economy and more growth if used responsibly.

Brand Assets
Check out our Github repository for brand assets, including Frankencoin and FPS logos.
Logo Assets
Download our Brand Guidelines to learn more about how to use the logo, as well as important details such as brand colors and typography.