Frgmnt Collateralization
Overview
Frgmnt’s collateral model is built around a curated set of high-quality stablecoins, selected and dynamically weighted based on their security, liquidity, yield performance, and ecosystem relevance.
This diversified and risk-scored collateral pool ensures that fUSD maintains its peg while maximizing efficiency and minimizing exposure to any single point of failure.
Every fUSD is minted against a stable and transparent collateral reserve - constantly optimized in real time.
How We Select Collateral
Each asset in the reserve is scored across a range of risk-adjusted metrics, including:
Protocol Security (audits, exploit history, resilience)
30-Day Average APY (net of fees)
Liquidity Depth
Centralization & Custody Risk
Ecosystem Incentives (e.g., airdrops)
This evaluation is informed by third-party data providers like Exponential.fi, as well as internal due diligence via platforms like DeFiLlama
Type of Collateral Used
Frgmnt exclusively uses battle-tested, liquid stablecoins:
USDC (by Circle)
DAI (by MakerDAO)
USDT (by Tether)
USDS (by Reserve & Maker)
USDE, USR, CRT, etc., evaluated on a rolling basis
We prioritize assets that offer a strong risk/yield balance, with protocol-level security and consistent access to liquidity.
Dynamic Collateral Allocation
Frgmnt’s allocation engine rebalances in real time based on:
Updated security and performance scores
Depeg monitoring
Yield evolution and liquidity changes
This ensures that the most stable, capital-efficient assets always back the fUSD supply. No asset remains in the reserve if its risk profile deteriorates.
Transparency by Design
Collateral weights, protocol integrations, and historical allocations are publicly available on-chain and summarized in the dApp. You can see exactly what backs your fUSD - and why.
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