Frax
Frax is a partially algorithmic stablecoin that originally maintained its peg using a mix of collateral and algorithmic mechanisms. It has since shifted toward a fully collateralized model to enhance stability and trust. FRAX plays a major role in the DeFi ecosystem and has a companion governance token, FXS. It is an innovative approach to stablecoins that balances decentralization with price stability.
| Frax | |
|---|---|
| Symbol | FRAX |
| Type | Algorithmic-backed |
| Collateralization Method | Partially Crypto-collateralized |
| Pegged To | USD |
| Issuer | Frax Protocol (Decentralized) |
| Blockchain Support | Ethereum |
| Market Cap Rank | 8 |
| Reserve Transparency | Medium (On-chain governance) |
| Stability History | Generally Stable |
| Primary Use Cases | DeFi liquidity, staking |
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