FRAX (Frax Finance) What It Really Is!!
Finance is a DeFi protocol originally known for issuing a stablecoin called FRAX, designed to be pegged to the U.S. dollar using a mix of collateral and algorithmic mechanisms. Over time, the system has been adjusted, and the protocol itself continues to evolve its token mechanics and ecosystem
Today, Frax is a multi-layer DeFi ecosystem — not just a coin. It includes:
Stablecoin infrastructure (frxUSD)
Liquidity & AMO strategies
Governance token mechanics
Upcoming Fraxtal blockchain and tools
Integration with real-world assets.
What the Protocol Is Building
frxUSD & BlackRock BUIDL Integration
Frax DAO has approved integrating BlackRock’s BUIDL fund (an institutional U.S. Treasury-backed liquidity fund) as backing for the new frxUSD stablecoin, reducing risk and linking crypto money to real-world assets.
Governance & Backing
Frax is governed by a DAO (Decentralized Autonomous Organization) token holders vote on collateral, upgrades, and integrations.
The protocol seeks institutional real-world assets like BlackRock’s BUIDL fund to improve backing for stable assets.