Frgmnt Collateralization

Overview

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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

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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) (A confirmer)

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

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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

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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

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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.