Frankencoin

Frankencoin emerged from a PhD research project at the University of Zurich’s Department of Finance and is inspired by economic game theory and decentralized governance principles. Its architecture is based on the concept of a “Continuous Capital Corporation,” which allows for automatic minting and redemption of tokens under a fixed ruleset. The system’s primary stablecoin, ZCHF, is pegged to the Swiss Franc and exists as an ERC-20 token across several chains. With a total supply of over 10 million ZCHF and more than 17 million ZCHF in value locked, the protocol is already demonstrating real adoption.

What sets Frankencoin apart is its oracle-free liquidation mechanism. Instead of using price feeds from third-party oracles, the protocol relies on market-driven incentives and community governance to manage risk. The governance model itself is uniquely veto-based: while anyone can propose new collateral types or system changes, only 2% of the voting power is needed to reject a proposal. This ensures decentralization without compromising on security or resilience.

The Frankencoin ecosystem extends beyond simple stablecoin functionality. Users can mint new ZCHF, pay with it using integrated payment solutions like Ammer.cash, and earn by participating in savings mechanisms. The protocol also supports Pool Shares (FPS), a governance token representing equity capital. Holders of FPS participate in fee distribution and liquidation proceeds but also take on residual system risk, similar to equity holders in a traditional bank. Their incentive is to grow and stabilize the system while benefiting from its success.

The platform integrates with a growing number of Swiss and European fintech players including Aktionariat for tokenized shares, DFX for fiat on/off ramps, and Uniswap for decentralized exchange access. This ecosystem approach reflects Frankencoin’s goal to offer a robust, multi-functional DeFi infrastructure for institutional and retail users alike.

Frankencoin provides numerous benefits and features that set it apart in the decentralized stablecoin space:

• Oracle-Free Stability: Maintains the CHF peg using market dynamics instead of external price feeds, reducing manipulation and dependency.
• Fully Decentralized: Governed by community stakeholders through a veto-based system, with no centralized entity controlling minting or supply.
• Multi-Chain Compatibility: Live on Ethereum, Polygon, Arbitrum, Optimism, and Base with seamless bridging and on-chain swapping.
• Academic Foundation: Built upon rigorous financial theory from the University of Zurich, ensuring a robust and well-modeled protocol design.
• Real-World Applications: Integrated with payment, tokenization, and DeFi services including wallets, merchant tools, and tokenized equity platforms.
• Permissionless Minting: Anyone can mint ZCHF by locking accepted collateral—no gatekeeping or whitelisting required.
• Sustainable Yield: Users can lock ZCHF and earn yield through decentralized savings products, contributing to platform health and scalability.

Frankencoin is designed to be accessible to both crypto-savvy users and newcomers. Here’s how to get started with Frankencoin:

• Step 1 – Choose Your Chain: Frankencoin is live on Ethereum, Polygon, Arbitrum, Optimism, and Base. Select your preferred network.
• Step 2 – Access the App: Visit the Frankencoin website and click on “Launch App” to access the protocol interface.
• Step 3 – Connect a Wallet: Use wallets like MetaMask, WalletConnect, or other EVM-compatible options.
• Step 4 – Mint or Buy ZCHF: Mint ZCHF by depositing collateral, or swap on supported DEXs like Uniswap. You can also buy using fiat through DFX.
• Step 5 – Start Using ZCHF: Use ZCHF to pay, save, or invest in various DeFi opportunities across the ecosystem.
• Optional – Explore Ecosystem Apps: Browse services like Aktionariat for tokenized securities or Ammer.cash for crypto payments.