Frankencoin PriceZCHF

What is Frankencoin (ZCHF)?

Frankencoin (ZCHF) is a decentralized Swiss franc stablecoin designed to track the value of the Swiss franc (CHF) on a 1:1 basis. It is described as the largest decentralized Swiss franc stablecoin, operating as an over-collateralized, fully on-chain system deployed across eight blockchains. Unlike centralized stablecoins that rely on an issuer to guarantee value, Frankencoin is backed by on-chain collateral that can be liquidated to maintain its peg. The project combines the stability of Switzerland's currency with the transparency and openness of blockchain technology. ZCHF is minted through overcollateralized on-chain borrowing positions rather than issued by a centralized company, bank, or trust. Its stability is supported by crypto collateral, protocol governance, challenge-and-auction liquidation mechanics, and market arbitrage. The circulating supply stands at approximately 35.39 million ZCHF, with an unlimited maximum supply. Frankencoin has been enabling on-chain Swiss franc transactions since 2023 with no significant deviations from its peg, and it operates as a fully transparent, rule-based, decentralized, modular, and neutral financial infrastructure.

Key Specifications & Tokenomics

• Name: Frankencoin
• Ticker / Symbol: ZCHF
• Type: Decentralized Swiss franc stablecoin
• Peg: Swiss Franc (CHF), designed to track CHF 1:1
• Launch Date: 28 Oct 2023
• Blockchain / Networks: Ethereum mainnet (native), plus Polygon, Arbitrum, Optimism, Base, Avalanche, Gnosis Chain, Sonic — deployed across 8 blockchains
• Token Standard: ERC-20
• Official Website: https://frankencoin.com/
• Documentation: https://docs.frankencoin.com/
• GitHub: https://github.com/Frankencoin-ZCHF/Frankencoin
• CertiK Rating: 4.2
• Circulating Supply: 35,391,924 ZCHF
• Total Supply: 35.39M ZCHF
• Max Supply: Unlimited
• Collateral Value: 68,473,089 ZCHF
• Collateral Composition: Over-collateralized reserve (~200%) of crypto-assets, mainly wrapped Bitcoin and Ether tokens
• FDV: $42.93M
• Holders: 3.11K
• Management Fees: 0%
• Performance Fees: 0%
• Subscription Fees: 0%
• Redemption Fees: 0%
• Governance Token: Frankencoin Pool Shares (FPS)
• Tags: Sonic Ecosystem, Ethereum Ecosystem, Avalanche Ecosystem

Who created Frankencoin?

The main founder of Frankencoin is Luzius Meisser, a notable figure in the cryptocurrency space with a background in computer science and economics. The project is organized under the Frankencoin Association, which maintains a presence on LinkedIn. Paolo Di Stefano serves as the Director of Collateral Management for the Frankencoin Association and has publicly explained how real-world assets can be used to mint ZCHF. The association oversees the development and governance of the protocol, ensuring it remains aligned with its mission of establishing a decentralized financial system. Detailed public information about the broader core team is currently limited.

How does Frankencoin work?

Frankencoin operates on the Ethereum blockchain through a set of smart contracts. At its core, it is a collateralized, oracle-free stablecoin designed to track the value of the Swiss franc. The system is independent from external oracles, enhancing its resistance to certain attacks and increasing its versatility regarding collateral usage. It relies on a novel liquidation mechanism that does not depend on oracles. Unlike other collateralized stablecoins, Frankencoin employs an auction-based liquidation mechanism that doesn't rely on external price sources. This mechanism is flexible, supporting various types of collateral available in the market, though its slower realization mechanism makes it less suitable for highly volatile collateral types. The protocol operates with two ERC-20 tokens: the stablecoin Frankencoin (ZCHF) and the governance token Frankencoin Pool Shares (FPS). Users deposit crypto assets as collateral to mint digital Swiss francs (ZCHF). The collateral remains under the user's control while securing the outstanding franc issuance, similar to a secured lending facility with transparent, automated terms. The collateral remains locked until its owner returns the created Frankencoins plus fees. Newly minted Frankencoins are typically sold in the market, and users can buy Frankencoins on various trading venues for payments, savings, or DeFi participation. Additionally, a StablecoinBridge plugin enables 1:1 swaps with other CHF stablecoins, and a Savings module pays out interest to ZCHF holders.

What makes Frankencoin unique and valuable?

Frankencoin distinguishes itself through several key features. It is fully decentralized, meaning its value does not depend on an issuer that guarantees its value; instead, it is backed by on-chain collateral that can be liquidated if necessary. The oracle-free design eliminates dependence on external price feeds, enhancing security and versatility. The auction-based liquidation mechanism provides flexibility in supporting various collateral types without relying on external price sources. Frankencoin is over-collateralized, such that each Frankencoin is always backed by at least one Swiss franc worth of assets, with the backing assets publicly visible on-chain. The project is fully compliant with Swiss Law and MiCAR, and a MiCA-format white paper has been published to support admission-to-trading and listing processes. The two-token system separates stablecoin functionality from governance through FPS, which uses a proportional capital valuation with a constant 3x multiplier. The smart contracts have undergone rigorous testing by Blockbite, Code4rena, and ChainSecurity, and their economic properties were scrutinized in a dissertation. Frankencoin has been deployed across 8 blockchains, making it the largest and most popular Swiss franc stablecoin, enabling on-chain transactions in Swiss francs since 2023 with no significant deviations from its peg.

What is Frankencoin used for?

Frankencoin serves multiple purposes within the cryptocurrency ecosystem. It enables payments, allowing users to make Swiss franc payments at Spar stores, via debit cards such as GnosisPay, or with IBAN integration through Mt Pelerin. Users can pay bills, receive salaries, and make everyday purchases. It facilitates borrowing, where users deposit crypto assets as collateral to access ZCHF liquidity while maintaining exposure to digital assets. It offers earning yield, providing market-based yield on ZCHF holdings through DeFi applications. It also supports building and integrating, as developers and businesses can integrate Frankencoin as a programmable Swiss franc layer. Notable use cases include payments, DeFi, and business applications. The ecosystem includes wallets, exchanges, companies, on- and off-ramps, apps, tokenization providers, bridges, and merchants that support the stablecoin's functionality and adoption. Users can buy Frankencoins on various trading venues, store them in the savings module to earn attractive interest, or contribute to the capital reserve of the system by getting Frankencoin Pool Shares (FPS) in return.

How Is the Frankencoin ecosystem developing?

The Frankencoin ecosystem thrives through a network of wallets, exchanges, companies, on- and off-ramps, apps, tokenization providers, bridges, and merchants. This interconnected framework supports the stablecoin's functionality and adoption. Payments integrations include Spar stores, debit cards through GnosisPay, and IBAN integration via Mt Pelerin. Exchanges and on-ramps include Swiss-regulated on-ramps for buying ZCHF directly with a bank transfer via a personal IBAN, Swiss-based services for buying and selling ZCHF with bank transfers, and decentralized exchanges such as Curve, Uniswap, CowSwap, and Enso. MEXC is referenced as a global centralized exchange with ZCHF trading pairs. A depeg cover feature allows users to protect their ZCHF with on-chain depeg cover. The Savings module pays out interest to ZCHF holders, and the StablecoinBridge plugin enables 1:1 swaps with other CHF stablecoins. The project maintains active development through its GitHub repository, which includes contracts, audits, documentation, and deployment scripts. Cross-chain governance is a unique aspect of the protocol, with an in-depth article discussing its approach. The ecosystem continues to expand across multiple blockchains, with supply distributed across Ethereum, Base, Optimism, Arbitrum, Polygon, and Avalanche C-Chain.

How to mine Frankencoin?

Frankencoin cannot be mined through traditional proof-of-work or proof-of-stake mechanisms. Instead, ZCHF is minted through overcollateralized on-chain borrowing positions. Users deposit suitable collateral, such as wrapped Bitcoin or Ether tokens, to create Frankencoins. The collateral remains locked until the owner returns the created Frankencoins plus fees. This process is similar to a secured lending facility with transparent, automated terms. The minting and borrowing costs are determined by the relevant collateralized position parameters rather than by a universal token-level fee schedule. There is no mining reward structure. Additionally, users can contribute to the capital reserve of the system and receive Frankencoin Pool Shares (FPS) in return. FPS can be redeemed later, with their price depending on the profitability of the system. FPS uses a proportional capital valuation with a constant 3x multiplier and has native governance voting on Ethereum. Savings-module or frontend integrations may include referral or convenience fees deducted from earned interest, not principal.

How to keep your Frankencoin Coin safe?

Keeping Frankencoin safe requires attention to both the protocol's design and general security practices. The smart contracts underpinning Frankencoin have undergone rigorous testing by Blockbite, Code4rena, and ChainSecurity, and their economic properties were scrutinized in a dissertation. Users should store ZCHF in wallets they control, as the project emphasizes a non-custodial approach. When using on-ramps, Swiss-based services offer non-custodial solutions where users retain their keys. For trading, decentralized exchanges like Curve, Uniswap, and CowSwap allow permissionless trading with full transparency, while CowSwap provides MEV protection. A depeg cover feature allows users to protect their ZCHF with on-chain depeg cover. Users should be aware that maintaining the Swiss franc peg is challenging, and it is possible for ZCHF to deviate from the Swiss franc price for various technical or market reasons. The auction-based liquidation mechanism, while flexible, has a slower realization mechanism that makes it less suitable for highly volatile collateral types. Regularly monitoring positions and understanding the risks associated with collateralized stablecoins are essential practices for safeguarding holdings.