FRAX • Fractional-algorithmic stablecoin
AlgorithmicSources: Frax Finance official announcements
FXS → FRAX governance token renamed, FRAX → frxUSD stablecoin renamed. FRAX token surged 100% in past month, peaked at $4.40 USDT. Unified system consolidates all ecosystem value flows to FRAX token.
Sources: Legislative tracking, market data
May 20, 2025: U.S. GENIUS Act passed Senate vote with only House approval and Presidential signature remaining. FXS token (now FRAX) surged above $4.40 USDT following passage, ranking first on major exchange gain lists. Legislation positions Frax as major beneficiary of new stablecoin regulatory framework.
Sources: TokenInsight, CryptoNews
100% collateralization through AMO smart contracts maintaining full backing. RWA integration including U.S. Treasury bills. veFRAX holders directly control monetary policy through governance mechanisms.
Sources: Frax Finance Biweekly Updates
Fraxtal L1/L2 private devnets operational with FRAX as gas token replacing frxETH. Q2 2025 mainnet target for chain evolution making FRAX true L1 token with validator requirements.
Sources: Frax Finance governance, community voting
Community unanimously voted to adopt BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) as collateral for frxUSD stablecoin through FIP-418 passage. Partnership with Securitize enables institutional-grade backing while maintaining decentralized governance structure and traditional finance integration.
Sources: Policy engagement reports
Goal: first fully licensed fiat stablecoin status. Direct involvement in policy making with active Washington D.C. engagement. Using fiat collateral for regulatory approval positioning.
Fractional-algorithmic stablecoin
Frax uses algorithmic mechanisms to maintain price stability, relying on smart contracts and market forces rather than traditional collateral. This innovative approach offers scalability but may carry additional complexity and risk.
FRAX is a hybrid algorithmic-collateralized stablecoin with wide multi-chain deployment. Notable for GENIUS Act involvement and innovative AMO (Algorithmic Market Operations) system transitioning to 100% collateralized backing.
| Network | Standard | Explorer |
|---|---|---|
| Ethereum | ERC-20 | Etherscan |
| Arbitrum | ERC-20 | Arbiscan |
| BSC | BEP-20 | BSCScan |
| Polygon | ERC-20 | PolygonScan |
| Avalanche | Native | Snowtrace |
| Fraxtal | Native | FraxScan |
| Protocol | Function | Explorer |
|---|---|---|
| FXS Token | Governance | View |
| frxETH | Liquid Staking | View |
| FPI | Inflation Peg | View |
| Network | TPS | Block Time | Avg Fee |
|---|---|---|---|
| Ethereum | ~15 | 12s | $5-50 |
| Arbitrum | ~4,000 | 250ms | $0.01 |
| BSC | ~100 | 3s | $0.10 |
| Polygon | ~7,000 | 2s | $0.01 |
| Avalanche | ~4,500 | 1s | $0.02 |
| Fraxtal | ~1,000 | 1s | $0.001 |
| Component | Current Status | Mechanism |
|---|---|---|
| Collateral Ratio | 100% | Fully backed |
| AMO System | Active | Automated ops |
| veFXS Governance | Live | Vote escrow |
FRAX founder Sam Kazemian was directly involved in drafting the GENIUS Act stablecoin legislation signed into law July 18, 2025. This regulatory involvement positions FRAX uniquely within the new federal framework for algorithmic stablecoins.