Frax (FRAX) Price Today & Live Chart

What is Frax?

Frax is the world's first fractional-algorithmic stablecoin protocol, pioneering a hybrid design that blends hard collateralization with algorithmic market operations to maintain a tight 1:1 peg to the US Dollar. The project was founded by Sam Kazemian (co-founder of Everipedia), alongside Travis Moore and Jason Huan, and launched on the Ethereum mainnet in December 2020. Rather than relying entirely on over-collateralized reserves like DAI or purely on algorithmic mechanics like the ill-fated TerraUSD, Frax dynamically adjusts its collateral ratio (CR) based on market demand for FRAX, making it one of the most capital-efficient stablecoin designs in DeFi. Following the 2022 stablecoin turbulence and the collapse of UST, the Frax community voted in 2023 (FIP-188) to gradually move the protocol to a fully collateralized model, targeting a 100% CR to reinforce trust and peg stability.

The Frax ecosystem has expanded far beyond a single stablecoin. It now includes frxETH, a liquid staking derivative of Ether that has become one of the top LSDs by TVL; sfrxETH, its yield-bearing variant; FPI (Frax Price Index), a CPI-pegged stablecoin; and Fraxlend, a permissionless lending platform. In 2024 the team rolled out Fraxtal, a Layer 2 blockchain built on the OP Stack that uses frxETH for gas and directs sequencer revenue back to FXS stakers. The governance token FXS (Frax Shares) captures fees, seigniorage, and value from across these products, while veFXS holders direct gauge emissions in a Curve-style vote-escrow model.

Partnerships and integrations are a core part of Frax's growth strategy. The protocol was an early and aggressive participant in the "Curve Wars," accumulating large CRV and CVX positions to direct liquidity incentives toward FRAX pools. Frax is deeply integrated with Convex, Curve, Aave, Balancer, and Yearn, and was among the first protocols to tap Circle's reserves through the IMF-style Fraxswap TWAMM. It also partnered with Chainlink and FRAX USD (frxUSD) efforts to move toward tokenized T-bill backing via BlackRock's BUIDL and Superstate in 2024-2025.

Controversy has not been absent. Critics have scrutinized the protocol's exposure during the USDC depeg in March 2023, when a portion of FRAX's collateral was temporarily affected, though the peg recovered quickly. Debates around the transition to full collateralization, the renaming of FRAX to frxUSD, and the economic role of FXS versus the newer Fraxtal gas token have shaped governance discussions. Despite these challenges, Frax remains one of the most researched and technically innovative stablecoin projects, frequently cited in academic papers on algorithmic stablecoin design. Today the ecosystem spans Ethereum, Fraxtal, Arbitrum, Polygon, Optimism, BNB Chain, and others, and its current state reflects a maturing DeFi protocol focused on real-world asset backing, cross-chain liquidity, and sustainable yield. For real-time Frax price, market capitalization, and trading volume, traders typically monitor aggregators like CoinGecko and CoinMarketCap alongside on-chain dashboards.

Key Features of Frax

• Fractional-Algorithmic Design: FRAX was the first stablecoin to combine hard collateral (primarily USDC) with an algorithmic component, dynamically adjusting its collateral ratio in response to market conditions. This hybrid model allows the protocol to scale efficiently without the capital drag of fully over-collateralized systems.
• veFXS Governance Model: FXS holders can lock tokens for up to four years to receive veFXS, gaining voting power over gauges, emissions, and protocol parameters. Lockers also earn a share of protocol revenue, aligning long-term holders with the health of the entire Frax ecosystem.
• Fraxtal Layer 2 Integration: Frax launched Fraxtal, an OP Stack-based Layer 2 that uses frxETH for gas fees and returns sequencer revenue to FXS stakers via the Flox incentive system. This gives the protocol a sovereign execution environment and a native fee capture mechanism.
• frxETH Liquid Staking: Through frxETH and its yield-bearing counterpart sfrxETH, Frax offers one of the highest-yielding liquid staking tokens in DeFi. The two-token design routes Curve LP rewards to frxETH holders and staking rewards to sfrxETH holders, often outperforming competing LSTs.
• AMO Smart Contracts: Algorithmic Market Operations Controllers (AMOs) autonomously deploy idle collateral into strategies like Curve liquidity, Aave lending, and investor pools to generate yield without breaking the peg. This turns the Frax treasury into an active, revenue-generating engine.

Frax Use Cases

• DeFi Stable Medium: FRAX serves as a stable unit of account across lending markets, DEXs, and yield aggregators on Ethereum, Fraxtal, and other chains. Traders use it to lock in profits, pay for services, and move value without exposure to crypto volatility.
• Liquidity Provision: FRAX is paired with USDC, DAI, and other stablecoins in Curve's FRAXBP pool, one of the largest stable pools in DeFi. Providing liquidity earns trading fees, CRV, CVX, and FXS emissions, making it a core primitive for stablecoin yield farmers.
• Collateral for Borrowing: Users deposit FRAX on Fraxlend, Aave, and other money markets to borrow other assets, or use it as borrowing collateral itself. Its stable value and deep liquidity make it efficient collateral with minimal liquidation risk from price swings.
• Cross-Chain Payments: With deployments across Ethereum, Fraxtal, Arbitrum, Optimism, BNB Chain, and Polygon, FRAX enables low-cost stable transfers between ecosystems. Businesses and DAOs use it for treasury management and cross-chain settlement.
• Yield on Idle Stablecoins: Staking sFRAX in the Frax Staking Vault offers a target yield benchmarked to the US Federal Reserve's IORB rate, giving holders a risk-adjusted return tied to real-world interest rates. This makes FRAX a productive alternative to holding idle USDT or USDC.

Frax Tokenomics

Total Supply

FXS has a maximum supply capped at 100,000,000 tokens, while FRAX itself is an elastic stablecoin whose supply expands and contracts with demand to maintain its USD peg.

Circulating

Dynamic — see CoinGecko for live figures. FXS circulating supply grows through scheduled emissions distributed via veFXS gauges, and FRAX supply fluctuates with mint and redeem activity.

Utility

FXS is the governance and value-accrual token, capturing fees from AMOs, Fraxlend, frxETH, and Fraxtal. FRAX functions as the protocol's flagship USD-pegged stablecoin used across DeFi for trading, lending, and payments.

Emission

FXS follows a halving-style emission curve that decreases annually, with emissions directed by veFXS voters to gauges that incentivize liquidity. The schedule is designed to reach the 100M cap over several years while maintaining long-term incentive alignment.

How to Buy Frax

1. 1

   1. Create a Binance Account

   Go to Binance.com or open the Binance app and sign up using your email or phone number. Set a strong password and enable two-factor authentication (2FA) via Google Authenticator from the Security tab to protect your funds.

2. 2

   2. Complete Identity Verification

   Navigate to the Identification page under your profile and submit a government-issued ID along with a selfie for KYC. Verification typically completes within minutes to a few hours and unlocks full deposit, trading, and withdrawal limits.

3. 3

   3. Deposit Funds

   Click Deposit in the Wallet menu and choose either fiat (via bank transfer, card, or P2P) or crypto such as USDT or BUSD. For the fastest route, buy USDT on the Buy Crypto page using a debit card, then proceed to the spot market.

4. 4

   4. Trade for FXS or FRAX

   Open the Trade menu, select Spot, and search for FXS/USDT or the relevant FRAX trading pair if listed in your region. Enter your desired amount, choose a Market order for instant execution or a Limit order to set your own price, then click Buy.

5. 5

   5. Withdraw to a Self-Custody Wallet

   For long-term holding, go to Withdraw in your Wallet, select the token and network (Ethereum or Fraxtal), and send it to a wallet like MetaMask or a hardware wallet. Always send a small test transaction first to confirm the address and network are correct.

Frequently Asked Questions