Frax
FRAX
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Frax Info
Frax Team
Individuals
OrganizationsFrax Intro
Frax is a unique and innovative stablecoin. Unlike traditional stablecoins, which are typically pegged to a single asset like the US dollar, Frax utilizes a dynamic system that combines both collateralized and algorithmic approaches. This hybrid model is designed to provide the stability of collateral-backed coins with the flexibility and scalability of algorithmic stablecoins.
Frax operates on a fractional-algorithmic basis, meaning that the amount of collateral backing each Frax coin can vary based on market conditions. When demand for Frax is high, the protocol reduces the amount of collateral needed, allowing for more coins to be minted. Conversely, when demand is low, the protocol increases the collateral ratio to maintain stability.
The Frax protocol is governed by the Frax Finance decentralized autonomous organization (DAO), which allows FRAX holders to vote on key decisions, such as changes to the collateral ratio. This ensures that the system remains transparent and accountable to its users.
Furthermore, the Frax protocol also includes a built-in mechanism for rewarding holders with FXS, the protocol's native governance token, providing an additional incentive for participation.
As of 2024, Frax has continued to innovate within the stablecoin space by expanding its ecosystem with the release of Frax v3. This version introduces real-world assets (RWAs) into its collateral framework, enabling the protocol to access near-Federal Reserve interest rates, thus enhancing the stability and scalability of the FRAX stablecoin. By partnering with FinRes, a non-profit entity, Frax is now able to diversify its collateral base and integrate safe, off-chain assets like treasury bonds, making it a more resilient and "all-weather" stablecoin designed to thrive in various market conditions.
Additionally, Frax is launching its own Layer 2 network, Fraxchain, which will further integrate decentralized finance (DeFi) features such as the Borrow AMM (BAMM) system. This new lending market is expected to dramatically improve liquidity by allowing users to post collateral and borrow assets without relying on external oracles. The launch of frxETH v2 is also transforming Ethereum staking within the Frax ecosystem, allowing validators to borrow ETH while participating in restaking services, thereby enhancing returns.
Above are only for introduction, not intended as investment advice.
Frax Unlock & AllocationReport a Data Error
Q&A about Frax Tokenomics
Explore the tokenomics of Frax (FRAX) and review the project details below.
What is the allocation for Frax (FRAX)?
FRAX does not have an initial allocation.
What is the supply schedule for Frax (FRAX)?
The quantity of the FRAX stablecoin is constantly fluctuating to maintain its price at $1, thanks to its fractional-algorithmic monetary policy. The Frax Shares (FXS) tokens, on the other hand, have a strict limit of 100 million tokens initially, with no planned inflation in the protocol. The supply of Frax is not predetermined, but rather is influenced by the demand for Frax and the Frax Protocol. The most recent information on supply can be found at: https://app.frax.finance
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Frax is a unique and innovative stablecoin. Unlike traditional stablecoins, which are typically pegged to a single asset like the US dollar, Frax utilizes a dynamic system that combines both collateralized and algorithmic approaches. This hybrid model is designed to provide the stability of collateral-backed coins with the flexibility and scalability of algorithmic stablecoins.
Frax operates on a fractional-algorithmic basis, meaning that the amount of collateral backing each Frax coin can vary based on market conditions. When demand for Frax is high, the protocol reduces the amount of collateral needed, allowing for more coins to be minted. Conversely, when demand is low, the protocol increases the collateral ratio to maintain stability.
The Frax protocol is governed by the Frax Finance decentralized autonomous organization (DAO), which allows FRAX holders to vote on key decisions, such as changes to the collateral ratio. This ensures that the system remains transparent and accountable to its users.
Furthermore, the Frax protocol also includes a built-in mechanism for rewarding holders with FXS, the protocol's native governance token, providing an additional incentive for participation.
As of 2024, Frax has continued to innovate within the stablecoin space by expanding its ecosystem with the release of Frax v3. This version introduces real-world assets (RWAs) into its collateral framework, enabling the protocol to access near-Federal Reserve interest rates, thus enhancing the stability and scalability of the FRAX stablecoin. By partnering with FinRes, a non-profit entity, Frax is now able to diversify its collateral base and integrate safe, off-chain assets like treasury bonds, making it a more resilient and "all-weather" stablecoin designed to thrive in various market conditions.
Additionally, Frax is launching its own Layer 2 network, Fraxchain, which will further integrate decentralized finance (DeFi) features such as the Borrow AMM (BAMM) system. This new lending market is expected to dramatically improve liquidity by allowing users to post collateral and borrow assets without relying on external oracles. The launch of frxETH v2 is also transforming Ethereum staking within the Frax ecosystem, allowing validators to borrow ETH while participating in restaking services, thereby enhancing returns.
Above are only for introduction, not intended as investment advice.