Overview
FRAX is the original fractional-algorithmic stablecoin, launched by Frax Finance in December 2020. It pioneered the hybrid model: partially backed by USDC and partially by the algorithmic FXS token. Over time, Frax Finance has evolved toward near-full collateralization and expanded into an entire ecosystem including frxETH (liquid staking), FPIS, and the Fraxtal L2. FRAX is now primarily collateralized via the Algorithmic Market Operations Controller (AMO).
Who Created FRAX?
FRAX was created by Frax Finance and launched in 2020. It is a Hybrid stablecoin designed to maintain a stable value pegged to the US dollar.
Key Features
- +Pioneer of fractional-algorithmic design — influenced UST, FRAX, and many successors
- +AMO system actively earns yield on collateral through Curve, Convex, and Aave deployments
- +Frax ecosystem extends to frxETH, sfrxETH, Fraxtal L2, and FPIS — creating network effects
- +Near 100% collateralization now vs. original fractional model — learned lessons from Terra
- +Deep Curve pool integration — Frax has some of the most liquid stablecoin AMM positions
- +Sam Kazemian's leadership has navigated multiple crises while maintaining innovation
Where to Use FRAX
FRAX is available on Ethereum, Arbitrum, Optimism and 5 other networks. You can use it on centralized exchanges for trading, in DeFi protocols for lending and borrowing, or as a stable store of value to park funds between trades.
Official website: https://frax.finance