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Frgmnt Model

Executive Summary

Frgmnt is a multi-collateralized stablecoin that aggregates several leading stablecoins to enhance overall resilience.

  • Dynamic Vaults: optimized reserve management to minimize risk, maximize stability, and capture the best available yields.

  • Efficient Mint/Redeem Mechanism: ensures constant liquidity and seamless user experience.

  • Staking: all fUSD tokens are put to work, but only stakers receive rewards via sfUSD — incentivizing long-term alignment and active participation

Frgmnt integrates Exponential.fi’s risk ratings to intelligently balance yield and safety - so you don’t have to.

The protocol is fully decentralized, meaning you always stay in control of your assets through your own wallet.

Introduction

Frgmnt is built on an innovative stablecoin aggregation model designed to offer greater price stability and resilience against market volatility. Unlike traditional stablecoins that rely on a single reserve or collateral type, Frgmnt combines multiple stablecoins and underlying assets within a highly optimized structure.

How Frgmnt is different?

1

Diversified collateral to reduce depeg risk

2

Automatic rebalancing of stablecoin weights based on our own ranking or exponential.

3

Best-in-class yield through intelligent allocation across top-performing protocols

Mint and Redeem Process

Minting Frgmnt

  • Users deposit supported stablecoins (e.g., USDC, DAI, USDT).

  • The protocol collateralizes the funds 1:1 on a diversified stablecoin pool.

  • Users receive an equivalent amount of fUSD in return.

Redeeming Frgmnt

  • Users exchange their fUSD for compatible tokens (e.g., USDC, DAI, USDT).

  • The protocol dynamically adjusts collateral allocation to ensure deep and efficient liquidity.

Peg Management

Frgmnt uses real-time asset balancing to maintain its 1:1 peg with USD. A dynamic allocation engine continuously optimizes liquidity and adjusts exposure to each stablecoin to defend the peg.

FRG Token Architecture

Frgmnt operates a dual-token model that separates stability from yield generation:

  • fUSD Token: a fully transferable, USD-pegged stablecoin — it serves as a reliable store of value and medium of exchange. While all fUSD tokens are actively deployed into yield-generating strategies, holding fUSD alone does not grant rewards.

  • sfUSD Token: a non-transferable receipt token received when users stake their fUSD. It gives direct access to protocol yields and compounds returns automatically.

This design ensures that no capital sits idle — every fUSD works in the background. But only stakers are rewarded, reinforcing the protocol's long-term alignment:

If you stake and support the ecosystem → you earn.

If you hold passively → your capital still helps, but others reap the rewards.

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