Legacy Frax Dollar

Frax Share (FXS) is the governance token of the Frax Protocol, a decentralized, fractional-algorithmic stablecoin system. The protocol aims to provide a highly scalable, decentralized, and algorithmic stablecoin that maintains a stable peg to the US dollar.

Fractional-Algorithmic Design

The Frax stablecoin (FRAX) is unique in its "fractional-algorithmic" approach. This means it is partially collateralized by other cryptocurrencies and partially stabilized algorithmically. The ratio between collateral and algorithmic backing can change dynamically based on market conditions.

FXS Token Utility

• Governance: FXS holders can vote on proposals affecting the Frax Protocol, including collateral ratios, fees, and new stablecoin listings.
• Seigniorage: When the demand for FRAX increases, new FRAX is minted, and a portion of the value goes to FXS holders.
• Staking: Users can stake FXS to earn rewards and participate in the protocol's security and stability mechanisms.

Protocol Goals

The Frax Protocol seeks to create a censorship-resistant and permissionless stablecoin that combines the best features of fully collateralized and purely algorithmic stablecoins, aiming for both stability and capital efficiency within the decentralized finance (DeFi) ecosystem.