TM Rating: 82% I
January 21st, 2021
Frax Protocol is a permissionless fractional-algorithmic stablecoin protocol currently implemented on the Ethereum blockchain. Unlike most stablecoin protocol designs being either entirely collateralized or entirely algorithmic without backing, Frax’s attempt revolves around implementing both design principles to put forward a pioneering stablecoin protocol. It is also making use of fully on-chain oracles using Uniswap and Chainlink oracles.
As we often see in the stablecoin ecosystem, Frax is composed of two different tokens. FXS (Frax Shares) is the governance token which accrues fees, seigniorage revenue, and excess collateral value. FRAX is the stablecoin targeting a tight band around $1 per
coin. The latest public audit reports are provided by CertiK. More and more stable coins protocol are being developed and Frax brings an innovative approach with its hybrid architecture.