Frax Share Research Hub | FXS information, history and analysis
Frax is the world’s first fractional-algorithmic stablecoin protocol. The end goal of the Frax protocol is to provide highly scalable, decentralized, algorithmic money in place of fixed-supply digital assets like BTC. The Frax protocol uses a 2-token model, including the stablecoin FRAX and the Frax Share Token (FXS). Frax is the first and only stablecoin with parts of its supply backed by collateral and parts of the supply algorithmic. This means FRAX is the first stablecoin to have part of its supply floating/unbacked. The stablecoin (FRAX) is named after the “fractional-algorithmic” stability mechanism. The ratio of collateralized and algorithmic depends on the market’s pricing of the FRAX stablecoin.
FXS is a native token of the Frax Share ecosystem, operating on Ethereum according to ERC20 standard. Users stake FXS on the platform to participate in governance and vote on decisions in the protocol, including:
- Changes or adjustments to collateral.
- Adjustment of FRAX minting/redeeming fees.
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.