Frax Shares (FXS) is a governance token that accumulates fees, mint revenues, and excess collateral value.1 Prior to Frax, stablecoins were classified into three categories: fiat-collateralized, cryptocurrency-overcollateralized, and collateral-free algorithmic.Frax is the first decentralized stablecoin to categorize itself as a fractional algorithmic, ushering in a fourth and most unique category.1The Frax protocol is a highly scalable, algorithmic alternative to fixed supply digital assets such as BTC. The ultimate goal of the Frax protocol is to provide a highly scalable, decentralized, algorithmic currency to replace fixed-supply digital assets such as BTC.The protocol includes the following concepts:

frax finance was founded by Jason Huan and Sam Kazemian. frx will be deployed on the mainnet on December 21, 2021.

Fractional Algorithms: Frax is a unique stablecoin whose supply is partially backed by collateral and partially backed by algorithms.The price of the FRAX stablecoin determines the ratio of collateral to algorithms. If FRAX trades above $1, the protocol reduces the collateral ratio. If FRAX trades below $1, the protocol increases the collateralization ratio.

Decentralized and minimal governance: governed by the community and emphasizes a highly autonomous, algorithmic approach with no active management.

Full chain oracle: Frax v1 uses Uniswap (ETH, USDT, USDC time-weighted average price) and Chainlink (USD price) oracle.

Two tokens: FRAX is a stablecoin targeting a tight range around $1/coin. Frax Shares (FXS) is a governance token that accumulates fees, mint revenue and excess collateral value.

Above are only for introduction, not intended as investment advice.