Frax Finance – FRAX is a dollar-pegged stablecoin that uses AMO smart contracts and permissionless, non-custodial subprotocols as stability mechanisms.
The FRAX stablecoin is a fractional-algorithmic stablecoin that is pegged to the US dollar. It is partially collateralized by USDC and other stablecoins, and the rest of its value is maintained by an algorithm that adjusts the supply of FRAX tokens. This algorithm uses a feedback mechanism to ensure that the price of FRAX remains close to $1.