$FRAX Protocol MechanicsFrax uses a collateral ratio (e.g., 50-100%) where lower ratios burn more FXS during FRAX minting, creating deflationary pressure and buy demand for FXS.FXS also serves as the gas token on the Fraxtal blockchain post its North Star hardfork.This dual role supports DeFi lending, liquidity provision, and staking rewards.Market PerformanceRecent trading shows FRAX/FXS around $0.89-$3.65 across exchanges like Binance, with 24-hour volumes exceeding $20M. Over the last week, prices fell ~17%, reflecting bearish trends, though yearly data indicates ~70% declines from peaks.
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