• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Frax

FRAX
Official links

News

Alphabet GOOGL Stock Surges Following DOJ Case Win

Alphabet GOOGL Stock Surges Following DOJ Case Win

chest
Alphabet's stock has seen significant gains after a favorable legal outcome and strong AI prospects.

Jesper Sørensen

Backed Finance Launches xStocks in Switzerland

Backed Finance Launches xStocks in Switzerland

chest
Backed Finance has registered in Switzerland to issue xStocks, digital representations of stocks like Tesla and Nvidia, attracting 30,300 unique holders.

Rajesh Kumar

Trump's Potential Meeting with Xi Jinping Gains Traction

Trump's Potential Meeting with Xi Jinping Gains Traction

chest
Traders on Kalshi are optimistic about a potential meeting between Trump and Xi Jinping this year, pricing in a 73% chance of occurrence.

Lucas Weissmann

Rekt Drinks' New Moon Crush Flavor Expected to Sell Out in Minutes

Rekt Drinks' New Moon Crush Flavor Expected to Sell Out in Minutes

chest
Users on the prediction market Myriad are betting on whether Rekt Drinks' new Moon Crush flavor will sell out in under five minutes, reflecting the brand's growing hype.

Filippo Romano

What is Frax?

Frax Protocol - the first stablecoin system with a fractional algorithm. Frax is open source, permissionless and fully on-chain - currently implemented on Ethereum (with possible cross-chain implementations in the future).

Contents:

Description of Frax Protocol

The ultimate goal of the Frax protocol - to provide highly scalable, decentralized, algorithmic money instead of fixed supply digital assets like BTC. The protocol includes the following features:

Fractional-Algorithmic Frax - a unique stablecoin with parts of its supply, backed by collateral and parts of the supply algorithm. The ratio of the cryptocurrency depends on the market price of the FRAX stablecoin. If the coin is trading above $1, the protocol lowers the collateral ratio. If the token is trading at less than $1, the protocol increases the collateral ratio.
Decentralized and minimized management Community driven and emphasizing a highly autonomous algorithmic approach without active management.
Full chain oracles Frax v1 uses Uniswap (ETH, USDT, USDC time-weighted average prices) and Chainlink (USD price).
Two tokens FRAX - a stablecoin, targeting a tight band around $1 per coin. Frax Shares (FXS) is a governance token that accrues fees, revenue and excess collateral value.

Prior to Frax, stablecoins were divided into three different categories: fiat-collateralized, crypto-collateralized and algorithmic uncollateralized. Frax - the first type of decentralized stablecoin that classifies itself as a fractional algorithmic coin, entering the fourth and most unique category.

Platform feature

The founding team of Frax engineers includes Travis Moore and Jason Huang. Sam Kazemian originally developed this idea when he noticed that stablecoins were growing rapidly, but none of them mixed algorithmic monetary policy and collateral. Projects that had a purely algorithmic monetary policy failed or closed without any significant traction. Frax was developed as a response to measure market confidence in a partially algorithmic and partially backed stablecoin.

Frax Protocol - a community driven and unique stablecoin design. Over 60% of FXS supply - issued over a number of years to liquidity providers and farmers. Frax

It is a fully decentralized protocol with onchain governance. It is also the first and only stablecoin to include a fractional-algorithmic hybrid design at the time of its launch in November 2020.

Project economics

The FRAX stablecoin supply is dynamic and constantly changing to keep the price at $1 due to its fractional algorithmic monetary policy. The Frax Shares (FXS) token supply is hard capped at 100 million tokens at genesis with no inflation chart in the protocol. The FXS token is a governance token that accumulates the entire value of new minted FRAX, fees and excess collateral. FXS is an investment and management asset, while FRAX is a currency token. FRAX, a stablecoin, is available on many major exchanges and DeFi platforms such as:

  • Uniswap;
  • DEXes.

Frax Shares (FXS) tokens are also available and just as liquid as a stablecoin. Investors, wishing to acquire the rights to purchase and manage the world's first fractional algorithmic stablecoin, must purchase Frax Shares (FXS). Users who want stability with the world's only fractional algorithmic stablecoin should purchase FRAX.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.