Frax /FRAX

What is FRAX (FRAX) Crypto? 

Frax (FRAX) is a stablecoin (meaning it is intended to be pegged to a fixed value like the US dollar) operating on a fractional-algorithmic model. It relies on algorithmic mechanisms that,  when combined, keep FRAX stable, specifically, at a ratio of 1FRAX=1USD. The fractional-algorithmic model algorithmically manages FRAX's collateralization ratio, relying on a combination of crypto-collateralized reserves and algorithmic supply to maintain price stability over time. Frax was launched in December 2020 by Sam Kazemian, Travis Moore, and Jason Huam, and it was developed to function as a scalable and decentralized stablecoin. 

Key Features of Frax (FRAX) 

Fractional-Algorithmic Model – The token itself combines collateral backing with algorithmic adjustments to stabilize the value of FRAX at $1. 

Decentralized Governance – The decentralized governance model - governed by holders of Frax Shares (FXS) - allows the community to introduce changes to the protocol (governance) and receive the value of the protocol's growth based on their participation in governance. 

Dual-Token System: 

FRAX – A stablecoin pegged to the US dollar. 

FXS (Frax Shares) – A governance token that collects value from gas fees and growth within the system. 

Price Stability Mechanism - uses an average price feed within the following systems of oracles such as Uniswap and Chainlink (to monitor the price peg and issue corresponding changes: buybacks/sells, etc.). 

The Frax Ecosystem 

1. Frax provides three different types of stablecoins: 

(a) FRAX - A stablecoin operating on a fractional-algorithmic model that utilizes both collateralized reserves and algorithmic mechanisms to address price stability, implementation/enforcement of price peg = to $1 (retention of target value). 

(b) FPI (Frax Price Index): is a stablecoin that maintains its value by tracking the Consumer Price Index (CPI) rather than being pegged to traditional fiat currency

(c) frxETH - A liquid staking token, designed to be an alternative to wrapped Ethereum (WETH). 

2. Fraxlend  

Fraxlend is a decentralized lending platform through permissionless borrowing and lending with FRAX and other assets to increase capital efficiency. 

3. Fraxswap

This is a decentralized exchange (DEX) specifically optimized for trading and liquidity provision; essentially acting as an agnostic platform for FRAX-related assets to be swapped seamlessly. 

Tokens in the Frax Ecosystem 

Frax Finance utilizes a systematic multi-token system, each token serves a different purpose within its stablecoin and broader DeFi ecosystem. 

FRAX (Frax Stablecoin) -offers a fractional-algorithmic stablecoin pegged to the US dollar, retaining stability from fees and growth through a combination of collateral backing and algorithmic supply. 

FXS (Frax Shares) - the governance token and utility token of the Frax ecosystem, accruing value from fees, seigniorage, and excessive collateral, that allows the holders to participate as community-based members in governance initiatives.

FPI (Frax Price Index) - A stablecoin pegged to a basket of consumer goods (CPI) through a layer of stake and builds on the case for growing wealth and/or participating in investing capital. 

frxETH (Frax Ether) - A liquid staking token, that acts as an alternative to wrapped Ethereum within DeFi (creative use of concepts during growth).

Where to buy FRAX Token?

FRAX tokens can be found on multiple cryptocurrency exchanges. Some of the easiest ways to purchase FRAX tokens includes using any of these exchanges - Curve (on Ethereum), Uniswap V3 (on Ethereum), LATOKEN, THENA, Gate.io, or Sushiswap. On these exchanges, trades or purchases of FRAX can be done using pairs like FRAX/USDC, FRAX/USDT, or FRAX/WETH.

Wallets that support Frax token?

When it comes to selecting a wallet for Frax (FRAX), it’s important to think about security, accessibility, and compatibility with DeFi applications. Trust Wallet, Ledger, imToken, MetaMask, Torus, Coinbase, TokenPocket, and iToken Wallet all are considered great choices for storing and managing your FRAX Coins.