$FRAX (FRAX) is a unique stablecoin project designed to maintain price stability while remaining decentralized. Unlike traditional stablecoins that are fully backed by fiat reserves, Frax uses a fractional-algorithmic model, meaning it is partially backed by collateral and partially stabilized through algorithms. The main goal of Frax is to stay close to the value of 1 US dollar, making it useful for trading, payments, and decentralized finance (DeFi) applications.

The Frax ecosystem includes multiple components such as **FRAX**, the stablecoin, and **FXS (Frax Share)**, which plays a key role in governance and system stability. When demand for FRAX changes, the protocol automatically adjusts supply using smart contracts, helping maintain its peg. This innovative approach has made Frax popular among DeFi users and developers looking for scalable and flexible stablecoin solutions.

Overall, Frax is considered an important project in the DeFi space due to its hybrid design and strong integration across many blockchain platforms. While it offers stability compared to volatile cryptocurrencies, it still carries risks related to market conditions and protocol mechanics.

FRAX

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