Partisia blockchain is partnering with Frax Finance in a new endeavor that will be mutually beneficial to both entities involved. The partnership was revealed via a press release shared with the public on December 9, 2021.
As a result of the deal, Frax Finance’s stable token FRAX will now be listed on the Partisia blockchain. The Frax Price Index (FPI) will also debut alongside FRAX, as it will be used to track the inflation rate of the native token, along with those of other tokens hosted on the Partisia blockchain.
For context, the FPI can be compared to the traditional Consumer Price Index (CPI) which, while used for the same purpose, is not an effective tool for tracking the rate of inflation in the crypto economy.
FPI, on the other hand, is tailored to crypto assets and can accurately reflect the full extent of inflation. More importantly, the FPI tool can reliably measure inflation without infringing on the privacy of the data provider, a significant value that the Partisia blockchain has held since its inception just a year ago.
Uniquely, Partisia blockchain offers pioneering privacy protection due to the development team’s deep experience in integrating privacy to safeguard enterprise data.
To accomplish this feat, the blockchain network employs secure Multi-Party Computing (MPC) technology, working in conjunction with Distributed Ledger Technology (DLT), forms a super-advanced platform that ensures confidentiality within the DeFi economy.
An important feature missing from most blockchain projects, according to Partisia, is privacy protection, especially as the digital economy continues to see a massive influx of crypto initiatives. Platforms like Partisia, on the other hand, are facilitating the development of highly efficient technological solutions, without compromising privacy protection.
In its own case, the recently introduced FPI tool will further encourage transparency in all these processes as it is built as an on-chain inflation tracker. By maintaining transparency, FPI will be integrated into the Partisia Blockchain protocol in which dedicated network oracles ensure user privacy.
With the above mentioned, the data uploaded to the blockchain will help the tracking tool to provide the DeFi world with an efficient and transparent inflation tracking service, which could challenge and compete with the existing IPC.
Speaking about their latest move, Brian Gallagher, co-founder of Partisia Blockchain, noted that the partnership was necessary, considering the advanced technology employed by Frax Finance.
“We chose to work with Frax Finance to integrate their algorithmic stablecoin, because the technology is moving beyond a USD-pegged stablecoin and uses a supply and demand curve, where users who mint and redeem FRAX keep the price stabilized,” Gallagher explained.
Gallagher went on to say that the FPI solution is capable of disrupting any non-transparent approach currently used to track inflation in the crypto market.
“Partnering with Partisia Blockchain enables the Frax protocol to access cutting-edge privacy protection technology,” said Travis Moore, Co-Founder of Frax.
“This allows us to build the Frax Price Index with a high degree of privacy protection.” Ultimately, the relationship between Partisia and Frax is mutually beneficial and has produced an advanced technology solution capable of driving the DeFi economy, in addition to their individual benefits.