What is Frax (FRAX)?

Ever wondered what a cow thinks of FRAX? In the humble bovine opinion, FRAX is a revolutionary concept in the world of stablecoins. Breaking away from the traditional categories of fiat collateralized, overcollateralized with cryptocurrency, and algorithmic with no collateral, Frax emerges as the first fractional-algorithmic stablecoin, moo-ving into a unique category of its own. But what does this mean? Simply put, FRAX is a stablecoin system where parts of its supply are backed by collateral and others are algorithmic, all decided by the market's pricing of the FRAX stablecoin. The Frax Protocol is open-source, permissionless, and lives entirely on-chain, creating a scalable, decentralized, algorithmic currency.

Another reason Frax stands out in the pasture is due to its governance model, which minimizes active management and emphasizes a highly autonomous, algorithmic approach. It relies on fully on-chain oracles such as Uniswap (for ETH, USDT, USDC time-weighted average prices) and Chainlink (for USD price). FRAX, the stablecoin, aims to maintain a value close to $1 per coin. Alongside FRAX, Frax Shares (FXS) serves as the governance token, accruing fees, seigniorage revenue, and excess collateral value. The supply of FRAX is dynamic, adapting to maintain its price, while the supply of FXS is hard-capped at 100 million tokens at genesis, with no inflation schedule. Remember, FXS is an investment and governance asset, while FRAX is the currency token. A quite interesting balance, isn't it?

Where can you swap or trade Frax (FRAX)?

Well, you don't have to ruminate too long on where to swap or trade FRAX. Our very own CoW Swap allows you to exchange your tokens in a pasture that aggregates all the DEXes where FRAX is swappable. With CoW Swap, you enjoy the benefits of gasless orders settled peer-to-peer or into any on-chain liquidity source, with a bonus of Maximal Extractable Value (MEV) protection. It's basically a DEX aggregator on steroids (or should we say, on grass?). So whether you're in for a trade or just looking to swap, you'll always find a home for your transactions on CoW Swap. Happy swapping, and as we like to say around here, Moo!