FRAX is an algorithmic US dollar stablecoin. It has about $152M in circulation, ranking #42 among the stablecoins CoinScoop tracks, and runs on 9 blockchains.
What is FRAX?
FRAX is an algorithmic US dollar stablecoin. It has about $152M in circulation, ranking #42 among the stablecoins CoinScoop tracks, and runs on 9 blockchains.
In the issuer's words: Frax attempts to be the first stablecoin protocol to implement design principles of both collateralized and algorithmic stablecoins to create a highly scalable, trustless, extremely stable, and ideologically pure on-chain money.
FRAX supply history
FRAX supply fell 3.4% over the past 30 days, to $152M. Its peak was $2.91B in March 2022, and supply is 95% below that high.
Is FRAX holding its peg?
FRAX is trading 0.5–2% from its target. Small coins often drift like this on thin markets. A gap that persists usually reflects redemption friction or doubts about the backing.
Where FRAX lives: supply by blockchain
Supply is concentrated: Ethereum holds 88% of all FRAX. Moving it to another chain means bridging, or a mint and redeem through the issuer.
How FRAX is backed
FRAX relies mainly on code and market incentives, rather than full reserves, to hold its peg. This design has historically been the most fragile.
Minting and redemption: Using the Frax Finance app, FRAX can be minted by locking USDC and burning FXS in a proportion determined by the protocol's collateral ratio.
Reserve reports and audits: certik.org
FRAX risks
With little hard collateral, falling confidence can feed on itself, the pattern that destroyed TerraUSD in 2022.
Copies of a stablecoin moved by third-party bridges depend on those bridges. Prefer the issuer's native contract on each chain.
At the last update FRAX traded at $0.9879 against a target of 1.
Rules such as the US GENIUS Act and the EU's MiCA can restrict which stablecoins exchanges list in a given country.
FRAX vs USDT and USDC
Similar algorithmic stablecoins
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FRAX FAQ
What is FRAX?
FRAX is an algorithmic US dollar stablecoin. It has about $152M in circulation, ranking #42 among the stablecoins CoinScoop tracks, and runs on 9 blockchains.
Is FRAX pegged 1:1 to the US dollar?
FRAX targets 1 USD. At the last update it traded at $0.9879, a deviation of -1.21%, which we classify as "slightly off peg".
What backs FRAX?
FRAX is an algorithmic stablecoin. FRAX relies mainly on code and market incentives, rather than full reserves, to hold its peg. This design has historically been the most fragile.
Which blockchains is FRAX on?
FRAX is live on 9 blockchains. The largest by supply are Ethereum ($136M), Fraxtal ($15.5M), BSC ($724K).
How much FRAX is in circulation?
About $152M of FRAX was in circulation at the last update, -3.4% over 30 days. That makes it the #42 stablecoin by supply among those we track.
Is FRAX safe?
No stablecoin is risk-free. As a algorithmic design, FRAX's main risks are a self-reinforcing loss of confidence (the "death spiral" that broke TerraUSD in 2022), thin or absent collateral, and smart-contract bugs. It currently shows "slightly off peg" on our peg monitor. This page is information, not investment advice.