Frax Price

Frax is an algorithmic stablecoin designed to maintain a stable price equal to 1 USD. Unlike traditional over-collateralized stablecoins like DAI, Frax is partially backed by USDC and its native token FXS.

The Frax Finance ecosystem includes several components:

1. Frax Stablecoin: The primary stablecoin of Frax intended to maintain a stable price equal to 1 USD.
2. Frax Price Index (FPI): The second stablecoin of the Frax financial ecosystem, FPI is pegged to a basket of real-world consumer goods defined by the average US CPI-U value to maintain stability with the actual price index.
3. Fraxlend: A permissionless lending market allowing users to borrow and lend Frax tokens.
4. Frax Ferry: A secure way to transfer and transport Frax tokens.

Frax's algorithmic stablecoin design model maintains price stability through dynamic adjustments, releasing stablecoin rewards to participating users.