How Frax Finance Breaks Barriers With Its Fractional-Algorithmic Stablecoin

Frax Finance is the first hybrid stablecoin protocol backed by both collateral and algorithms. Think of it as the first on-chain central bank that controls the monetary policy of a fractional-algorithmic stablecoin called FRAX.

Because of its partially collateralized and algorithmic-pegged model, it has created a niche within the stablecoin space, breaking away from most other stablecoins that are either overcollateralized or entirely algorithmic.

What Is Frax Finance?

FRAX is the first fractional stablecoin that aims to be scalable, decentralized and algorithmic money. It was founded by Sam Kazemian, Travis Moore and Jason Huan, who have created other Frax products such as the Frax Price Index.

What Is a Fractional-Algorithmic Stablecoin?