What is Frax Share (FXS)?

Moo-ve over traditional stablecoins! Introducing Frax Share (FXS), the governance and value accrual token of the innovative Frax Stablecoin Protocol. Unlike previous stablecoin systems, Frax is the first-ever fractional-algorithmic stablecoin protocol, with its robust system design being open-source, permissionless, and completely on-chain. Frax was engineered to be a highly scalable, decentralized, algorithmic money substitute for fixed-supply digital assets, such as BTC. The token that makes this possible is none other than the Frax Share (FXS).

But what makes Frax so unique? Two elements: it's fractional-algorithmic and it's decentralized with minimized governance. Frax's supply is partially backed by collateral and partially algorithmic, the ratio of which is influenced by the market's pricing of the FRAX stablecoin. If FRAX trades above $1, the protocol decreases the collateral ratio, and if it's under $1, the collateral ratio increases. This dynamic, yet autonomous system design helps to maintain a tight band around the desired $1/coin value. Besides FRAX, there's Frax Share (FXS), the governance token that accrues fees, seigniorage revenue, and excess collateral value. Unlike its counterpart, FXS tokens are hard-capped at 100 million tokens at genesis with no inflation schedule in the protocol. FXS is not just a governance asset but also an investment instrument.

What distinguishes Frax from the herd is its unique, community-driven design. With over 60% of the FXS supply being issued over several years to liquidity providers and yield farmers, it exemplifies a truly decentralized protocol. The Frax Protocol was the brainchild of American software developer Sam Kazemian, making its debut as the first and only stablecoin to incorporate the fractional-algorithmic hybrid design in November 2020.

Where can you swap or trade Frax Share (FXS)?

Ready to join the stampede? Swap or trade your Frax Share (FXS) tokens at the one and only CoW Swap! As a 'Meta' DEX aggregator, CoW Swap provides a trading interface built atop the CoW Protocol. This unique trading platform allows users to buy and sell tokens through gasless orders that are settled peer-to-peer, or into any on-chain liquidity source while being safeguarded by MEV (Maximal Extractable Value) protection. Your path to decentralized finance has never been more accessible, or more cow-themed!