Frax Price

Frax Finance is a decentralized finance platform that has introduced a suite of stablecoins, primarily including FRAX, FPI, and frxETH. Each of these digital currencies serves distinct purposes within the ecosystem.

• FRAX: This USD-pegged stablecoin is designed to maintain a 1:1 value ratio with the US dollar. To ensure the stability of its peg, the Frax protocol employs a dynamic collateral ratio (CR). This ratio adjusts in real-time based on market demand and supply, allowing FRAX to effectively respond to the fluctuating crypto market.

• FPI (Frax Price Index): Announced as part of the project’s expansion, the FPI aims to create a consumer price index tailored for the crypto market, providing users with an alternative measure for value.

• frxETH: This stablecoin is a representation of Ethereum assets within the Frax ecosystem, offering users additional possibilities for engagement in the DeFi space.

The flexibility and innovation inherent in Frax's design place it at the forefront of the stablecoin market, catering to both everyday users and investors seeking a reliable digital asset.