What Is It?

Frax Finance is primarily a fractional stablecoin protocol on Ethereum and 12 other blockchains. It also provides auxiliary DeFi services such as a native automated market maker (AMM) and a lending facility.  

About Frax Finance

Frax Finance is a fractional stablecoin protocol that allows users to mint the FRAX stablecoin. Frax Finance was launched on 21 December 2020, and has since amassed a total value locked (TVL) of US$1.23B as of 1 December 2022 across all its networks. Its stablecoin, FRAX, is currently the 5th largest stablecoin by market capitalization.

The base stability mechanism of FRAX ensures price stability is maintained by adjusting the collateralization ratio (CR) required to mint FRAX according to the current price of FRAX, which affects how much FXS or USDC is required to mint $1 of FRAX.

FRAX V2 introduced Algorithmic Market Operations (AMO) in addition to its base stability mechanism. This is done through multiple AMO controllers engaging in market-wide operations to help with the expansion of FRAX as long as they do not lower the collateral ratio and change the FRAX price. This includes engaging in automated activities like collateral investing, providing liquidity to other DEXs using idle USDC, as well as lending out FRAX on money markets to generate yields.
Learn more about stablecoin mechanisms here!

Products

Tokens and Tokenomics

FXS total supply of 100M tokens will be distributed as such:

  • 60% to Frax Finance community members
  • 20% to team members and future employees of Frax Finance
  • 12% to investors
  • 5% to Project Treasury
  • 3% to advisors

Appendix

  1. Frax Finance Dashboard – Frax Finance – Dashboard
  2. Frax Finance Documentation – Frax: Fractional Stablecoin Protocol – Frax Finance ¤
  3. Fraxshare Token Address 
    1. Ethereum Network- 0x3432B6A60D23Ca0dFCa7761B7ab56459D9C964D0
    2. Solana Network- 6LX8BhMQ4Sy2otmAWj7Y5sKd9YTVVUgfMsBzT6B9W7ct
    3. Avalanche Network- 0x214DB107654fF987AD859F34125307783fC8e387
    4. Arbitrum Network- 0x9d2F299715D94d8A7E6F5eaa8E654E8c74a988A7
    5. BSC Network- 0xe48A3d7d0Bc88d552f730B62c006bC925eadB9eE
    6. Optimism Network- 0x67CCEA5bb16181E7b4109c9c2143c24a1c2205Be
    7. Fantom Network- 0x7d016eec9c25232b01F23EF992D98ca97fc2AF5a
    8. Polygon Network- 0x1a3acf6D19267E2d3e7f898f42803e90C9219062

Harvest, our Portfolio Management Tool, supports Frax Finance! Learn how to track your position here. Unsure which protocols are supported? Check out the complete list. If you enjoyed this, explore Learn DeFi, which covers DeFi fundamentals. Alternatively, read Insights for more in-depth research on the DeFi space. Subscribe for our updates below!