What is Frax Finance in the crypto world? How does it work?

What is Frax Finance in the crypto world? How does it work?

Frax Finance is a decentralized finance (DeFi) protocol focused on creating algorithmic stablecoins that are partially backed by collateral and partially algorithmic. It aims to combine the stability of traditional stablecoins with the flexibility of algorithmic systems. This collection explores how Frax Finance works, its mechanisms, and its role in the evolving DeFi ecosystem.

6 articles
Frax (FRAX): A New Kind of Stablecoin Frax (FRAX): A New Kind of Stablecoin
Instead of simply functioning as a specialized stablecoin, Frax aims to serve as a decentralized finance (DeFi) money market that makes use of several distinct mechanisms. These include minting and redeeming the FRAX stablecoin as well as staking by provi
2026-02-03 15:35
Frax Finance (FXS): A Stablecoin Protocol in the Bankless DeFi Innovation Index Frax Finance (FXS): A Stablecoin Protocol in the Bankless DeFi Innovation Index
Collateral Ratio (CR) determines how much collateral is needed in order for users to mint one $FRAX (CR is 85% at the time of writing). $FRAX is the stablecoin that is pegged to $1 USD. On the other hand, $FXS is the governance token of Frax Finance. Toge
2026-02-03 15:34
Get to know Frax Finance: Leading Stablecoin Innovation Get to know Frax Finance: Leading Stablecoin Innovation
Crypto markets in general are very volatile compared to other commodities. Stablecoins such as USDT, USDC, and those issued by Frax Finance play an important role as they serve as primary tools that are directly tied to conventional assets such as the Dol
2026-02-03 15:31
What is Frax Finance (FXS) and How Does it Work? What is Frax Finance (FXS) and How Does it Work?
The DeFi industry is already filled with multiple applications that serve various DeFi purposes. Curve is a destination for investors and crypto projects that need liquidity, UniSwap is the largest DEX in the DeFi industry, and AAVE is the premier lending
2026-02-03 15:27
What Is the Frax Ecosystem? FRAX vs. FXS vs. frxETH What Is the Frax Ecosystem? FRAX vs. FXS vs. frxETH
Frax Finance is a DeFi protocol that includes a multi-chain stablecoin protocol (FRAX), liquid staking on Ethereum (frxETH), lending markets, and liquidity systems like DEXs. The protocol uses vetokenomics and Frax Shares (FXS) for governance, where users
2026-02-03 15:25
What Is Frax Finance (FRAX)? What Is Frax Finance (FRAX)?
Frax Finance (FRAX) is a decentralized cross-chain "fractional-algorithmic" stablecoin protocol seeking to enrich the use of stablecoins.
2025-09-15 16:28