Legacy Frax Dollar
FRAX
Evaluation Score
Overall rating on a scale of 0-10
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AI Analysis
Comprehensive evaluation of the token
Frax Finance stands out as a highly innovative and adaptive project within the DeFi space. It is led by a credible, public team and features a robust, decentralized governance structure. The project's pragmatic evolution from a fractional-algorithmic to a fully collateralized stablecoin (FRAX) significantly enhances its stability and market trust. With strong ongoing development, a comprehensive ecosystem including its own L2 (Fraxtal), and a solid security record despite minor operational incidents, Frax is well-positioned. While it operates in the highly competitive stablecoin market, its strong fundamentals, clear utility, and dedicated community make it a formidable player.
Detailed Analysis by Category
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Legacy Frax Dollar (FRAX)
Legacy Frax Dollar (FRAX)
Legacy Frax Dollar (FRAX) is the original Frax stablecoin protocol token on Ethereum. As a fractional-algorithmic stablecoin, FRAX maintains a 1:1 peg with the US dollar through a mix of on-chain collateral and algorithmic supply adjustments. Designed for DeFi applications, FRAX powers seamless lending, borrowing and trading across decentralized exchanges.
Key Features
- Ethereum-based Stablecoin: ERC-20 token compatible with wallets, DEXs and smart contracts.
- Fractional-Algorithmic Design: Maintains dollar peg via partially collateralized reserves and dynamic mint/burn mechanisms.
- High Scalability: Fast, low-cost transactions leveraging Ethereum’s security.
- Governance Integration: Community-driven parameter updates via the Frax DAO and FXS token holders.
Use Cases
- Medium of exchange and unit of account in DeFi protocols
- Collateral asset for lending, borrowing and yield farming
- Liquidity provision on decentralized exchanges
How It Works
- Minting & Burning: Users deposit collateral (USDC, ETH) and/or FRAX’s governance token (FXS) to mint new FRAX or burn FRAX to redeem collateral.
- Peg Stability: The protocol algorithmically adjusts FRAX supply based on market demand and collateral ratios.
- Decentralized Governance: Parameter changes and upgrades are proposed and voted on within the Frax DAO.
Token Symbol: FRAX
Token Name: Legacy Frax Dollar
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