Legacy Frax Dollar

FRAX Price

About Legacy Frax Dollar (FRAX)

Legacy Frax Dollar (FRAX) is a decentralized, multi-chain stablecoin that pioneered the fractional-algorithmic model to maintain a stable value relative to the US Dollar.

• The protocol employs a hybrid stability mechanism that combines collateral backing with algorithmic supply adjustments.
• It has evolved through multiple iterations, transitioning from a partially collateralized system to a model focused on full exogenous collateralization.
• FRAX serves as a core liquidity pillar within a broader ecosystem that includes lending, swapping, and a dedicated Layer 2 blockchain.

What Is Legacy Frax Dollar

Legacy Frax Dollar is the original stablecoin of the Frax Finance ecosystem, designed to provide a highly scalable and decentralized alternative to centralized digital dollars. The protocol aims to maintain a stable price target by balancing the supply of FRAX against market demand. Value moves through the system via minting and redemption processes, where users interact with the protocol's smart contracts to issue new tokens or exit their positions.

Following the North Star Hardfork, the original FRAX token was designated as the "Legacy Frax Dollar" as the protocol introduced new stablecoin variants like frxUSD. Despite this transition, the token continues to function within the ecosystem's various subprotocols. It is "put to work" through its use in decentralized lending markets, liquidity pools, and as a reference asset for the protocol's Algorithmic Market Operations (AMOs), which deploy capital to generate revenue and stabilize the peg. This system scales by increasing the efficiency of its collateral usage as the ecosystem's total value grows.

What Makes Legacy Frax Dollar Unique

• Fractional-Algorithmic Architecture: Unlike purely collateralized or purely algorithmic stablecoins, FRAX was the first to implement a variable collateral ratio that adjusts based on market confidence.
• Algorithmic Market Operations (AMOs): The protocol uses specialized smart contracts called AMOs to manage its balance sheet across various DeFi platforms without manually moving funds, allowing for automated peg stability.
• Subprotocol Integration: FRAX is natively integrated into a suite of internal tools including Fraxlend (lending), Fraxswap (an automated market maker), and Frax Bonds (FXBs).
• CPI-Linked Variants: The ecosystem also supports the Frax Price Index (FPI), which tracks inflation rather than a flat fiat currency peg.

What Can You Use Legacy Frax Dollar for?

Legacy Frax Dollar is pegged to the US Dollar. Based on its design and ecosystem support, it provides the following use cases:

1. Value retention: The asset allows users to hold a digital, on-chain representation of the US Dollar, which may reduce exposure to the volatility typically associated with the broader cryptocurrency market.
2. Yield generation: Users can access yield opportunities by providing liquidity to decentralized protocols like Curve or by utilizing the protocol's sFRAX vault, which distributes rewards derived from protocol-owned assets and real-world instruments like US Treasuries when supported by governance.
3. Cross-border settlement / value transfer: FRAX enables international remittances and global trade by allowing frictionless, near-instant transfers of US Dollar value across multiple blockchain networks without relying on traditional banking intermediaries.
4. Collateralization: It is widely used as a backing asset for borrowing and lending within decentralized finance (DeFi) protocols, including the native Fraxlend platform, and serves as margin for various derivative trading strategies.

How Does Legacy Frax Dollar Work?

Legacy Frax Dollar functions through a series of smart contracts that manage its stability and supply. In its original fractional phase, the protocol utilized a dual-token system involving FRAX and a governance token. When the market price of FRAX rose above the peg, the protocol decreased the collateral ratio, allowing more tokens to be minted with less backing. Conversely, if the price fell below the peg, the protocol increased the collateral ratio to restore confidence.

In its more recent versions, the protocol shifted toward using Algorithmic Market Operations (AMOs). These are autonomous contracts that perform specific monetary policies, such as providing liquidity to automated market makers (AMMs)—protocols that use liquidity pools rather than order books to facilitate trades—to defend the peg. As an application utility token within these subprotocols, FRAX facilitates transactions and is used to pay protocol service fees rather than serving as native network gas. This architecture ensures that the stablecoin remains backed by a diverse set of assets, including other stablecoins and tokenized real-world assets.

Team Info and Investors

Legacy Frax Dollar was founded by Sam Kazemian, Kedar Iyer, and Jason Huan. The project is governed through a decentralized autonomous organization (DAO) structure, where token holders participate in decision-making via the frxGov module. The protocol has established significant industry connections, with its newer stablecoin variants being supported by institutional-grade assets from entities such as BlackRock and Superstate. Early development was documented through open-source contributions on GitHub and community-led governance proposals on Snapshot.

Where can you buy Legacy Frax Dollar?

FRAX tokens can be traded on decentralized exchanges. The most popular exchange to buy and trade Legacy Frax Dollar is Curve (Ethereum), where the most active trading pair USDE/FRAX has a trading volume of $88,761.70 in the last 24 hours. Other popular options include Fraxswap (Ethereum) and Uniswap V3 (Ethereum).

What is the daily trading volume of Legacy Frax Dollar (FRAX)?

The trading volume of Legacy Frax Dollar (FRAX) is $62,564.82 in the last 24 hours, representing a -22.50% decrease from one day ago and signalling a recent fall in market activity. Check out CoinGecko’s list of highest volume cryptocurrencies.

What is the highest and lowest price for Legacy Frax Dollar (FRAX)?

Legacy Frax Dollar (FRAX) reached an all-time high of $1.66 and an all-time low of $0.2498. It’s now trading -40.40% below that peak and 297.10% above its lowest price.

What is the market cap of Legacy Frax Dollar (FRAX)?

Market capitalization of Legacy Frax Dollar (FRAX) is $217,554,105 and is ranked #185 on CoinGecko today. Market cap is measured by multiplying token price with the circulating supply of FRAX tokens (220 Million tokens are tradable on the market today).

What is the fully diluted valuation of Legacy Frax Dollar (FRAX)?

The fully diluted valuation (FDV) of Legacy Frax Dollar (FRAX) is $217,554,105. This is a statistical representation of the maximum market cap, assuming total number of 220 Million ETH tokens are in circulation today.

How does the price performance of Legacy Frax Dollar compare against its peers?

With a price increase of 0.10% in the last 7 days, Legacy Frax Dollar (FRAX) is underperforming the global cryptocurrency market which is up 1.00%, while underperforming when compared to similar Stablecoins cryptocurrencies which are up 0.40%.

How to add Legacy Frax Dollar (FRAX) to MetaMask?

Adding Legacy Frax Dollar (FRAX) to MetaMask allows you to view your token holdings, trade on decentralized exchanges, and more. To add them, you’ll need to import FRAX as a token. You can copy FRAX’s contract address (0x853d955acef822db058eb8505911ed77f175b99e) and import it manually, or if you've installed MetaMask's chrome extension, add FRAX to MetaMask with one click on CoinGecko.

Add FRAX to MetaMask.