> For the complete documentation index, see [llms.txt](https://fatexdao.gitbook.io/fatexdao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://fatexdao.gitbook.io/fatexdao/fatexdao-dapps-and-tokens/fxd-global-commodity-denomination/the-solution-is-fxd/fxd-coin-overview.md).

# FxD: Coin Overview

FxD Token Overview (central-peg, DeFi, cryptocurrency reserve, not pegged to gold)

**Watch the video below and/or read the explanation on this page.**

{% embed url="<https://youtu.be/B4uiwf_7v3k>" %}

### **FxD token:**&#x20;

![](https://2473928169-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-Mh1SUj3ra-j-vOC-rTO%2Fuploads%2FxWx8iglacDzWffKRyHfa%2Fimage.png?alt=media\&token=e2142058-3a99-428b-9526-a82e37dadcaa)

* 1 FxD token with a value of 1.000000000000000001 (18 decimal places)
* A second, "asset(s)" token(s) (issuance size can change) is used for:&#x20;
  * Stability via simple, forkable, audited, public algorithm.
  * Price feed(s) come from off-chain data feeds that have traceable & easily quantifiable & predictable supply & demand channels.&#x20;
    * Data source(s) are public and already considered national security-related (and manipulated by national security interests)
  * Collateral held in more than 1 "neutral" location(s) (i.e. Switzerland) & 100% redeemable.
  * There are multiple assets of more than 2 very sectors that can be swapped as the stabilizer:
    * 1 commoditized-asset-token type is used at a time, chosen based on:
      * the statistical probability of predictive price
      * lowest volatility
      * the lowest risk of black-swan event, the analysis includes socio-political factors.
  * Price feeds are not connected to where assets are physically vaulted for redemption
  * Real collateral quantity is balanced to represent the algorithm.
  * DAO must have 100% real holdings for each asset token that can be used.
    * The result is overabundance of multiple assets, and types, backing FxD. &#x20;
    * Surplus reserves of each token (asset-class) produce ancillary income as marketable investment instruments - when not being used.
    * This serves as coverage in extreme, downward, market volatility.&#x20;
  * Adjustments to collateral(s) do not impact price negatively but increase its value.
  * FxD price rises purposely, using a discounting multiple, as more reserves are added.
  * Cryptocurrencies like Bitcoin, Ethereum are supported as well.