ZCHF, issued by the Frankencoin Protocol smart contracts under the governance of Frankencoin Pool Shares (FPS) tokenholders, is a decentralized, over-collateralized stablecoin that tracks the value of the Swiss franc (CHF) [S1][S2].

Holders receive a token tracking the Swiss franc (CHF), maintained near parity through over-collateralization and market arbitrage rather than an issuer guarantee, with no hard peg [S2]. A savings module lets ZCHF holders deposit to earn yield funded by the system's equity reserve, at an interest rate set through governance with a multi-day delay before accrual begins [S3]. Protocol-level costs include upfront minting interest, a reserve held back at minting, and a 1,000 ZCHF proposal fee for new collateral types [S3][S2][S4].

ZCHF is issued by a decentralized protocol with no single corporate issuer and does not represent a claim toward any issuer [S4][S5]. The Frankencoin Association, a Swiss non-profit based in Zug, Switzerland, supports the ecosystem but does not control the protocol [S1]. Citing a legal memorandum, the documentation assesses ZCHF as a payment token that neither formally nor functionally qualifies as a security under Swiss law [S4][S5]. A minter redeems by burning ZCHF to close a position and recover collateral, which remains under the position owner's control rather than with a central custodian [S3][S6].

ZCHF is an ERC-20 token native to Ethereum mainnet, with FPS governance voting native to Ethereum [S4][S1][S6]. ZCHF is also available across Polygon, Arbitrum, Base, Optimism, Gnosis Chain, and Avalanche via bridges [S4][S6]. Minting occurs through collateralized positions; new collateral types require a proposal and at least a 3-day initialization period during which qualified FPS holders may veto [S2][S7]. Valuation is oracle-free, determined by an auction and challenge mechanism [S2][S3].

<Sources
  retrievedAt="2026-06-22"
  items={[
    { id: "S1", url: "https://frankencoin.com" },
    { id: "S2", url: "https://docs.frankencoin.com/positions" },
    { id: "S3", url: "https://docs.frankencoin.com/" },
    { id: "S4", url: "https://docs.frankencoin.com/faq" },
    { id: "S5", url: "https://docs.frankencoin.com/llms-full.txt" },
    { id: "S6", url: "https://docs.frankencoin.com/reserve" },
    { id: "S7", url: "https://docs.frankencoin.com/governance" },
  ]}
/>


Stablecoins

Users can mint ZCHF by providing crypto collateral through an auction mechanism. The protocol uses a novel governance model where token holders vote on collateral types and risk parameters.

Frankencoin is a decentralized protocol that issues ZCHF, a Swiss Franc-pegged stablecoin backed by crypto collateral. ZCHF uses an auction-based mechanism for collateral management without relying on external oracles.

Frankencoin Protocol is a community-governed DeFi protocol focused on bringing a decentralized Swiss Franc stablecoin to multiple blockchains.

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Stablecoin issuers

Frankencoin

Frankencoin ZCHF (ZCHF) is a Swiss Franc stablecoin issued by Frankencoin.

Holders can mint and redeem directly with Frankencoin.

ZCHF has been issued on public blockchains since October 2023 and is native to 8 networks, including Ethereum, Arbitrum One, Avalanche, Base, Gnosis, and OP Mainnet.

Frankencoin ZCHFZCHF

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