What is Frax Share (FXS)?
Frax Share is the utility token of the Frax Protocol, a groundbreaking stablecoin system that combines fractional-algorithmic features. Frax operates as an open-source and permissionless platform, fully built on the Ethereum blockchain (with potential future implementations across different chains). The primary objective of the Frax protocol is to establish a highly scalable, decentralized, algorithmic form of money as an alternative to fixed-supply digital assets like BTC.
The 2 tokens within the protocol: FRAX serves as the stablecoin, aiming to maintain a narrow band around $1 per coin. Frax Shares (FXS) function as the governance token, accumulating fees, seigniorage revenue, and excess collateral value.
The FXS token possesses the ability to provide both upside and downside utility within the system, ensuring that value fluctuations are consistently stabilized away from the FRAX token. At its genesis, the FXS supply is established at 100 million tokens. However, the circulating supply is expected to be deflationary over time, particularly as FRAX is minted at higher algorithmic ratios. The protocol's design ensures that the supply of FXS predominantly follows a deflationary trajectory as long as the demand for FRAX continues to grow.
Frax Team Background
The Frax Protocol was conceived by Sam Kazemian, an American software developer, who introduced the concept of a fractional-algorithmic stablecoin in 2019.
The founding team of Frax engineers consists of Travis Moore and Jason Huan. Sam Kazemian initially conceived the idea when he observed the rapid growth of stablecoins but noticed that none of them incorporated a combination of algorithmic monetary policy and collateralization. Projects solely relying on algorithmic monetary policies had faced failures or shutdowns without gaining significant traction. Frax was designed as a solution to assess the market's confidence in a stablecoin that combines elements of both algorithmic mechanisms and collateralization.
Some of Frax's partners are: Wombat, Revest Finance, Bug Finance, THENA, Swell...
Frax Project Development
Some of Frax's newest developments:
- DoveSwap has launched liquidity pools for the following pairs: FRAX/USDC, frxETH/ETH, and frxETH/sfrxETH. Users have the opportunity to provide liquidity on DoveSwap and earn LP rewards.
- Hourglass has introduced a liquid layer for the Frax-Convex frxETH/ETH LP tokens. This allows users to trade their long-term staked positions, adapt to changing market conditions, and seize the best opportunities without missing out.
- Frax Finance collaborated with Swell, allowing users to vote on adding a gauge for the swETH-frxETH pool on Curve.
- The upgraded $frxETH-ETH v3 Farm is now live on ETH PancakeSwap. Users can stake their $frxETH-ETH LP tokens on PancakeSwap (0.05% fee tier) v3 LP to earn CAKE.
- Balancer Boosted Paradigm now supports $FRAX and $frxETH pools on the Polygon network. Users can harness the boosted power of Aave V3 with their $FRAX and $frxETH pools.
Frax Share Price Analysis
As of November 24 2024 Frax Share has a marketcap of $226M.
This is {{percentagefromath}} from its all time high of $42.80.
In terms of its tokenomics, there's a total supply of 100M with 85% currently outstanding.
Keep in mind Frax Share has a fully diluted value of $265M which many investors might interpret as overvalued.
Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.
Summarized in part by ChatGPT 4 and Claude
