Frax Price Index (FPI) is an algorithmic index-linked stablecoin. It has about $7.0M in circulation, ranking #147 among the stablecoins CoinScoop tracks, and runs on 2 blockchains.
What is FPI?
Frax Price Index (FPI) is an algorithmic index-linked stablecoin. It has about $7.0M in circulation, ranking #147 among the stablecoins CoinScoop tracks, and runs on 2 blockchains.
In the issuer's words: The Frax Price Index (FPI) is the second stablecoin of the Frax Finance ecosystem. FPI is a stablecoin pegged to a basket of real-world consumer items as defined by the US CPI-U average.
FPI supply history
FPI supply was flat over the past 30 days. Its peak was $100M in April 2022, and supply is 93% below that high.
Is FPI holding its peg?
FPI is not pegged to a fixed currency amount. Its target value floats with an index or basket, so we show its US dollar price rather than a peg status.
Where FPI lives: supply by blockchain
Supply is concentrated: Ethereum holds 96% of all FPI. Moving it to another chain means bridging, or a mint and redeem through the issuer.
How FPI is backed
FPI 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, users swap FRAX to mint FPI at the current exchange rate. FPI can be redeemed for FRAX at any time.
FPI risks
With little hard collateral, falling confidence can feed on itself, the pattern that destroyed TerraUSD in 2022.
With $7.0M in circulation, exiting a large position may move the price. Redemption may be limited to approved customers.
Copies of a stablecoin moved by third-party bridges depend on those bridges. Prefer the issuer's native contract on each chain.
Rules such as the US GENIUS Act and the EU's MiCA can restrict which stablecoins exchanges list in a given country.
FPI vs USDT and USDC
FPI FAQ
What is FPI?
Frax Price Index (FPI) is an algorithmic index-linked stablecoin. It has about $7.0M in circulation, ranking #147 among the stablecoins CoinScoop tracks, and runs on 2 blockchains.
What backs FPI?
FPI is an algorithmic stablecoin. FPI 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 FPI on?
FPI is live on 2 blockchains. The largest by supply are Ethereum ($5.9M), ZKsync Era ($250K).
How much FPI is in circulation?
About $7.0M of FPI was in circulation at the last update, 0.0% over 30 days. That makes it the #147 stablecoin by supply among those we track.
Is FPI safe?
No stablecoin is risk-free. As a algorithmic design, FPI'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. Its supply is small, so liquidity can be thin. It currently shows "index-linked" on our peg monitor. This page is information, not investment advice.