💸 Stablecoins are like the Goldilocks of crypto — not too hot, not too cold, just right. But what if Goldilocks was also a math genius?
Meet Frax (FRAX) — the fractional algorithmic stablecoin that’s part smart contract, part magic trick. 🎩✨
Unlike your usual stablecoin that’s 100% backed by cash or crypto, FRAX keeps it flexible. It’s backed partially by collateral and partially stabilized algorithmically — so it’s always adjusting to keep its price around $1.
Here’s the trick:
• When FRAX trades above $1, the protocol lowers the collateral ratio, relying more on algorithms.
• When FRAX dips below $1, it increases collateral to keep things stable and prevent a meltdown.
Think of FRAX like a seesaw with a math brain — it balances collateral and code to keep your stablecoin just right. No surprises, no drama, just steady $1 vibes. 🎢💡
So if you want a stablecoin that’s part scientist, part accountant, and all about that peg, FRAX is the smart choice.