Last updated at 2022/10/04
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Frax, $FRAX

USD-pegged Stablecoin

KPIs & Market Data

Market Cap
$1.4B
Market Cap 7d %
+0.14%
Market Cap 30d %
-9.13%
Volume 24h
$8.2M
Volume 7d
$83M
Mechanism
Hybrid
Governance
Decentralized
Issuer
Frax Finance
Jurisdiction
n.a.

Frax is a fractional-algorithmic stablecoin protocol pegged 1:1 to USD. The protocol is governed by the Frax Shares token (FXS). Frax is combining on-chain collateral with a price-stability algorithm to ensure price stability while maintaining capital efficiency in a decentralized way. The protocol guarantees that FRAX can always be exchanged against $1 of value allowing arbitrageurs to balance the price around $1. The algorithm for price stability is a mint-and-burn algorithm against its governance token FXS similar to other algorithmic stablecoins.

Risks

  • Smart Contract Risk
  • Death Spiral under adversarial conditions (Bank run scenario) in case the collateral is devalued (unlikely, but depending on market conditions contagion effects could happen)
  • Hyperinflation of price-floating coin
  • Loss of funds due to de-peg

$FRAX Newsticker

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