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Information about Frax Share (FXS)
The Frax Protocol is the first fractional-algorithmic stablecoin system. Frax is open-source, permissionless, and entirely on-chain – currently implemented on Ethereum (with possible cross chain implementations in the future). The end goal of the Frax protocol is to provide a highly scalable, decentralized, algorithmic money in place of fixed-supply digital assets like BTC. The protocol incorporates the following concepts:
Fractional-Algorithmic – Frax is a unique stablecoin with parts of its supply backed by collateral and parts of the supply algorithmic. The ratio of collateralized and algorithmic depends on the market's pricing of the FRAX stablecoin. If FRAX is trading at above $1, the protocol decreases the collateral ratio. If FRAX is trading at under $1, the protocol increases the collateral ratio.
Decentralized & Governance-minimized – Community governed and emphasizing a highly autonomous, algorithmic approach with no active management.
Fully on-chain oracles – Frax v1 uses Uniswap (ETH, USDT, USDC time-weighted average prices) and Chainlink (USD price) oracles.
Two Tokens – FRAX is the stablecoin targeting a tight band around $1/coin. Frax Shares (FXS) is the governance token which accrues fees, seigniorage revenue, and excess collateral value.
Before Frax, stablecoins were divided into three different categories: fiat collateralized, overcollateralized with cryptocurrency, and algorithmic with no collateral. Frax is the first kind of decentralized stablecoin to classify itself as fractional-algorithmic ushering in the 4th and most unique category.
News
Frax Finance aims for Fraxtal, its recently launched layer-2, to reach $100 billion TVL by the end of 2026.
The project also proposes sharing 50% of its revenue with veFXS holders and using the remaining 50% to buy back FXS and Frax assets from the market.
Frax Finance launched Frax Bonds (FXB) token
Frax Finance has unveiled Frax Bonds (FXB), a utility token that converts into 1 FRAX stablecoin trustlessly upon maturity.
Frax Finance to launch Ethereum Layer 2 named Fraxchain
The team behind Frax Finance, known for creating the Frax stablecoin, has unveiled its strategy to introduce a Layer 2 blockchain: Fraxchain.
Fraxchain is designed as a Layer 2 rollup deriving its security from the Ethereum mainnet. The network is expected to be ready by the end of the year.
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