What is the Frax Protocol (FRAX)? The Frax protocol is the first fractional algorithmic stablecoin system. Frax is open source, permissionless and fully on-chain, currently implemented on Ethereum (with possible cross-chain implementations in the future). The ultimate goal of the Frax protocol is to provide highly scalable, decentralized, algorithmic money instead of fixed-supply digital assets like BTC. The protocol incorporates the following concepts: Fractional-Algorithmic: Frax is a single stablecoin with parts of its supply backed by collateral and parts of its supply algorithmic. The ratio between collateralized and algorithmic depends on the market price of the FRAX stablecoin. If FRAX trades above $1, the protocol reduces the collateral ratio. If FRAX is trading for less than $1, the protocol increases the collateral ratio. decentralized & Minimized Governance: Governed by the community and emphasizing a highly autonomous algorithmic approach with no active management. Fully on-chain oracles: Frax v1 uses Uniswap (time-weighted average prices of ETH, USDT, USDC) and Chainlink (price in USD) oracles. Two Tokens – FRAX is the stablecoin targeting a narrow band around $1/coin. Frax Shares (FXS) is the governance token that accumulates commissions, seigniorage income and excess collateral value. Before Frax, stablecoins were divided into three different categories: fiat collateral, cryptocurrency over-collateral, and uncollateralized algorithmic. Frax is the first type of decentralized stablecoin to be classified as fractional algorithmic, marking the beginning of the fourth and most unique category. How many FRAX and FXS coins are there in circulation? The FRAX stablecoin supply is dynamic and constantly evolving to keep the price at $1 thanks to its fractional algorithmic monetary policy. Frax Shares (FXS) token supply is capped at 100 million tokens at genesis with no inflation schedule in the protocol. The FXS token is the governance token that accumulates the entire value of newly minted FRAXs, fees, and excess collateral. FXS is an investment and governance asset, while FRAX is the currency token. What makes Frax unique? The Frax Protocol is a community-driven stablecoin with a unique design. Over 60% of the FXS supply is issued over multiple years to liquidity providers and yield producers. It is a fully decentralized protocol with on-chain governance. It is also the first and only stablecoin to incorporate a fractional algorithmic hybrid design at the time of its launch in November 2020. Who are the founders of the Frax protocol? The Frax protocol is the brainchild of American software developer Sam Kazemian, who first came up with the idea for a fractionalized algorithmic stablecoin in 2019. The founding team of Frax engineers includes Travis Moore and Jason Huan. Sam Kazemian originally came up with the idea when he noticed that stablecoins were growing rapidly, but none had a combination of algorithmic monetary policy and collateralization. Projects that had a purely algorithmic monetary policy failed or were closed without any significant traction. Frax was designed as a response to gauge market confidence in a partially algorithmic, partially collateralized stablecoin. Where can I buy or obtain FRAX and FXS? FRAX, the stablecoin, is available on many major exchanges and DeFi platforms, such as Uniswap and DEXes. Frax Shares (FXS) tokens are also available, liquid like stablecoins. Investors looking to buy the upside and governance rights to the world's first fractional algorithmic stablecoin should purchase Frax Shares (FXS). Users who want stability using the world's only fractional algorithmic stablecoin should purchase FRAX.