Frax Protocol(FRAX) — the first fractional algorithmic stablecoin system.
Contents:
- Description of Frax Protocol(FRAX)
- The uniqueness and peculiarity of the project
- Tokenomics of Frax Protocol(FRAX)
- Where to buy tokens?
Description of Frax Protocol(FRAX)
Frax is open source, permissionless and completely online - currently implemented on Ethereum (with possible cross-chain implementations in the future). It is a fully decentralized protocol with network control. It is also the first and only stablecoin to use a fractional-algorithmic hybrid design.
The Frax protocol — the brainchild of American software developer Sam Kazemian, who came up with the first idea for a fractional-algorithmic stablecoin.
The uniqueness and peculiarity of the project
According to the developers, the main goal of the Frax protocol — to provide scalable, decentralized, algorithmic money instead of digital assets with a fixed supply, such as BTC. Frax Protocol — a community-driven, uniquely designed stablecoin.
The protocol includes the following concepts:
| Fractional-algorithmic | Part of the offer is secured by collateral, and part is secured by the offer algorithm |
| Decentralization | Community governance and emphasis on a highly autonomous algorithmic approach without active management |
| On-chain oracles | Frax v1 uses Uniswap and Chainlink oracles |
Prior to Frax, stablecoins fell into three different categories: fiat-backed, cryptocurrency-backed and algorithmic uncollateralized. Frax — the first type of decentralized stablecoin that classifies itself as a fractional algorithmic coin, opening up the 4th and most unique category.
Tokenomics of Frax Protocol(FRAX)
The project has two tokens - FRAX — a stablecoin, aimed at a narrow range around $1 per coin. Frax Shares (FXS) — a governance token that generates commissions, seigniorage income and excess collateral value.
The FRAX stablecoin supply is dynamic and constantly changing to keep the price at $1 due to fractional algorithmic monetary policy. The Frax Shares (FXS) token supply is hard capped at 100 million tokens at genesis without an inflation schedule in the protocol. The FXS token — a governance token, charged with the entire value of newly issued FRAX, fees and excess collateral. FXS — an investment and management asset, while FRAX is a currency token.
Where to buy tokens?
FRAX is available on many major exchanges and DeFi platforms such as Uniswap. Investors, wishing to acquire the growth potential and management rights of the world's first fractional-algorithm stablecoin, should also purchase the Frax (FXS) token. Users who want stability by using the world's only fractional algorithm stablecoin should purchase FRAX.
The token can be bought on the following major cryptocurrency exchanges:
- Binance;
- Mandala Exchange;
- KuCoin;
- Gate.io;
Over 60% of the FXS supply is issued over a number of years to liquidity providers and crop farmers.