Fractional-Algorithmic StablecoinUSD-pegged stablecoin combining collateral backing with algorithmic mechanisms.FRAX is a stablecoin designed to maintain a 1:1 peg to the US dollar through a hybrid model that blends asset collateralization with algorithmic stability. Unlike fully collateralized stablecoins or purely algorithmic ones, FRAX uses a dynamic collateral ratio that adjusts based on market demand—when demand rises, less collateral is required to mint new tokens. The protocol burns its governance token (FXS) proportionally to any uncollateralized portion of newly minted FRAX, creating an economic incentive to maintain the peg.
Multi-Token EcosystemPart of a broader DeFi suite including lending, liquid staking, and a Layer 2 chain.FRAX operates within a larger ecosystem that includes two additional stablecoins—FPI, pegged to a basket of consumer goods, and frxETH, a liquid staking derivative for Ethereum. The protocol also features Fraxtal, a modular Layer 2 blockchain built on Optimism technology that uses frxETH as its native gas token. Beyond stablecoins, the ecosystem includes lending markets, automated market makers, and governance mechanisms powered by the FXS token and its locked variant veFXS.
Founded by Blockchain BuildersCreated in 2019 by Sam Kazemian, Travis Moore, and Jason Huan.The Frax protocol was launched in 2019 with the goal of creating a decentralized stablecoin independent of Bitcoin's price volatility. Kazemian and Moore had previously collaborated on Everipedia, a blockchain-based knowledge repository. The project has evolved from its original stablecoin focus into a comprehensive DeFi ecosystem, with governance distributed across the community through the FXS token.
