Prix de Frax (prev. FXS) (FRAX)

The Frax Protocol is the first stablecoin system based on a fractional algorithm. Frax is an open-source, permissionless, on-chain protocol that is currently applied on Ethereum (ETH) with possible cross-chain implementations in the future.

The Frax protocol's ultimate goal is to provide massively scalable, decentralized, algorithmic money in place of a fixed-supply digital asset like Bitcoin. 

FRAX (pegged to the US dollar) and FPI are the two stablecoins in the Frax ecosystem. The Frax Finance economy is primarily made up of two stablecoins, a native AMM (Fraxswap), and a loaning facility (Fraxlend).

Frax Share features and Updates

Frax is a one-of-a-kind stablecoin, with components of its supply collateralized and portions of its supply algorithmic. The collateralized to algorithmic ratio is determined by the FRAX stablecoin's market pricing.

When FRAX trades above $1, the protocol reduces the collateral ratio. If FRAX falls below $1, the protocol raises the collateral ratio.

Because of its fractional-algorithmic monetary policy, the supply of the FRAX stablecoin is constantly shifting and fluctuating in order to keep the price at $1.

The supply of Frax Shares (FXS) tokens is hard capped at genesis, with no consumer price index scheduled in the protocol. The FXS token serves as the governance token, accumulating the value of freshly minted FRAX, service charges, and excess collateral. FXS is an asset for investment and governance, while FRAX is a currency token.

Over a number of years, financing providers and yield farmers receive more than 60% of the supply of FXS. It is a completely decentralized protocol with on-chain governance.

Thus, it will also be the first and only stablecoin to use the marginal hybrid design when it launched in November 2020.

The current price of Frax Share is $6.46 USD, with a trading volume of $5,377,032 USD.

Frax Share Team

Sam Kazemia: Founder of the fractional-algorithmic stable coin in 2019. Other founding members include Travis Moore and Jason Huan.