Frax Finance (Frax for short), formerly known as Decentral Bank, is a fractional algorithm stable currency protocol. Frax is an open source, permissionless, and fully on-chain protocol, currently running on Ethereum (cross-chain operation may be realized in the future). The ultimate goal of the Frax protocol is to provide a highly scalable and decentralized algorithmic currency to replace fixed-supply digital assets such as BTC. The name of the stable currency FRAX comes from the "cent coin-algorithm" stabilization mechanism. The ratio of collateral to algorithm depends on the market's pricing of FRAX stablecoins. When the transaction price of FRAX is above $1, the agreement will reduce the mortgage ratio. When the trading price of FRAX is below $1, the agreement will increase the collateral ratio.
Frax Finance (Frax for short), formerly known as Decentral Bank, is a fractional algorithm stable currency protocol. Frax is an open source, permissionless, and fully on-chain protocol, currently running on Ethereum (cross-chain operation may be realized in the future). The ultimate goal of the Frax protocol is to provide a highly scalable and decentralized algorithmic currency to replace fixed-supply digital assets such as BTC. The name of the stable currency FRAX comes from the "cent coin-algorithm" stabilization mechanism. The ratio of collateral to algorithm depends on the market's pricing of FRAX stablecoins. When the transaction price of FRAX is above $1, the agreement will reduce the mortgage ratio. When the trading price of FRAX is below $1, the agreement will increase the collateral ratio.
