What is FRAX

Frax is a hybrid algorithmic stable coin, partially backed by USDC and FXS. FRAX's algorithm balances the collateral ratio (amount of USDC) based on supply and demand and liquidity of FRAX. The goal is to achieve decentralization based on an algorithmic model, without the drawbacks from the traditional twin coin system (i.e. UST/LUNA).

1. White Paper Summary

TLDR: FRAX’s hybrid collateralization model offers unique opportunity on a value driven perspective.

Intrinsic value can be derived by FXS’s core role when composing FRAX’s total collateral
Endogenous value can be derived from revenues channeled to FXS from the FRAX ecosystem

Resources