frax
Frax
FRAX
$1.01

Sector

Stablecoin

Exchange Debut

2020-12-21

Market Cap

653,156,813

Maxim Supply

Circulating Supply

649,434,271

Circ. Supply(%)

frax

Frax

FRAX

Price

$1.01

Market Cap

Sector

Exchange Debut

653,156,813
2020-12-21

Volume 24h

High 24h

Low 24h

1661621
1.016215512638
0.993174183767

Change 24h

Change 7d

Change 30d

0.7136
0.9148
0.8039

Maxim supply

Circulating supply

Circulating supply(%)

649,434,271

The opinion of artificial intelligence (AI), based on the fundamental analysis of the Frax-FRAX cryptocurrency:

 

The Frax Protocol represents a pioneering approach in the cryptocurrency world, being the first fractional-algorithmic stablecoin system. Its unique structure combines collateral backing with algorithmic adjustments, providing a scalable and decentralized monetary solution on the Ethereum blockchain. The fundamental analysis of the Frax – FRAX cryptocurrency reveals a total score of 6.73 out of 10. This score reflects various aspects of the project, including social presence, security, token economy, and more. The protocol’s aim to replace fixed-supply digital assets with a more dynamic, decentralized currency sets a notable precedent in the crypto landscape.

SOCIAL & MASS MEDIA: Score 7.3 out of 10

The Frax Protocol demonstrates a strong presence in social and mass media, evidenced by its overall score of 7.3. Its community is highly active on social media platforms, achieving perfect scores in community activity and media presence. However, there are areas for improvement, particularly in attracting followers and enhancing the activities of social media administrators.

AUDIT & SECURITY: Score 7.5 out of 10

In terms of audit and security, the Frax Protocol earns a solid 7.5. It shows commendable transparency and has undergone thorough audits, ensuring a reliable and secure framework for users. Liquidity on exchanges also stands out as a strong point, enhancing the protocol’s trustworthiness.

TOKENOMICS: Score 7.75 out of 10

The token economy of Frax scores a notable 7.75. The project excels in managing inflation, maintaining a balanced approach. However, the centralization of the monetary mass is a concern, indicating a need for more distributed control and ownership.

ECOSYSTEM DEVELOPMENT: Score 7.24 out of 10

Frax’s ecosystem development is progressing well, with a score of 7.24. The project has been successful in achieving its objectives and shows promise in bringing new developments. Continued focus on innovation and expansion will be crucial for its future growth.

TEAM & DEVELOPERS: Score 6.8 out of 10

The team behind Frax, scoring 6.8, possesses significant experience, though there is room for growth in the number of software developers. Expanding the development team could accelerate innovation and implementation of new features.

PRODUCT & UTILITY: Score 4.5 out of 10

The utility of the Frax product and its tokens within the ecosystem scores 4.5. While there is some utility recognized, there’s a notable need for enhancement in this area to increase the relevance and applicability of the tokens.

PARTNERS & INVESTORS: Score 6.9 out of 10

The partnership and investor network of Frax scores 6.9. The protocol has attracted a decent number of investors and partners, though there’s potential for further expansion and collaboration to strengthen its market position.

Fundamental analysis of the Frax-FRAX cryptocurrency – The final conclusion

In the final analysis, the Frax Protocol emerges as a novel and promising project in the cryptocurrency domain. Its fractional-algorithmic stablecoin system presents an innovative approach to decentralized finance. While the fundamental analysis of the Frax – FRAX cryptocurrency shows strengths in social media presence, security, and tokenomics, there are areas needing attention, such as product utility and team expansion. The overall score of 6.73 reflects a balanced mix of opportunities and challenges. For investors, this translates to a project with potential, albeit with considerations for the identified areas of improvement. The innovative nature of the protocol, combined with proactive steps to address its weaker areas, could enhance its appeal as a sound investment choice in the evolving crypto landscape.

What is Frax?

The Frax Protocol represents a pioneering approach in the realm of stablecoins, introducing the first fractional-algorithmic stablecoin system. This protocol operates entirely on the Ethereum blockchain, with potential for future cross-chain implementations. Its primary objective is to establish a scalable, decentralized, algorithmic currency, an alternative to fixed-supply digital assets like Bitcoin.

Fractional-Algorithmic Nature

A distinctive feature of Frax is its hybrid composition. The supply of its stablecoin, FRAX, is partly backed by collateral and partly algorithmic. The balance between these two is dynamically adjusted based on FRAX’s market price. When FRAX trades above $1, the collateral ratio is reduced. Conversely, a trade value below $1 leads to an increased collateral ratio.

Decentralization and Governance

Frax emphasizes community governance and minimal active management. It adopts a highly autonomous, algorithmic governance model, setting it apart from traditional active management systems.

On-Chain Oracles and Dual-Token System

Frax utilizes fully on-chain oracles, specifically Uniswap and Chainlink, for accurate pricing data. The ecosystem comprises two tokens: FRAX, the stablecoin, and Frax Shares (FXS), the governance token. FXS holders benefit from accrued fees, seigniorage revenue, and excess collateral value.

Unique Position in the Stablecoin Market

Before Frax, stablecoins were broadly categorized into three types: fiat-collateralized, overcollateralized by cryptocurrency, and purely algorithmic without collateral. Frax introduced a fourth category, the fractional-algorithmic model, marking a significant evolution in the stablecoin space.

Circulation and Community Involvement

The circulation details of FRAX and FXS are significant, with over 60% of FXS supply distributed to liquidity providers and yield farmers over several years. This approach underscores the protocol’s commitment to decentralization and community-driven governance. Frax’s launch in November 2020 was a milestone, as it was the first to blend fractional and algorithmic elements in a stablecoin.

Fundamental analysis of the Frax-FRAX cryptocurrency

Frax - FRAX performance

GENERAL CRITERIA:

Score

SOCIAL & MASS MEDIA
0
AUDIT & SECURITY
0
TOKENOMICS
0
ECOSYSTEM DEVELOPMENT
0
TEAM & DEVELOPERS
0
PRODUCT & UTILITY
0
PARTNERS & INVESTORS
0
Content description – Go to Metholodogy

Social & Mass Media In this section was taken into consideration the intensity of the activity of the social media page of the administrators , the speed of the community growth, the user interaction with the pages and as well the number of media appearances in the most important trade publications.

Audit & Security In particular, the team looks if the project is audited, how extensive the audit is,  at the bug bounty program, if it had incidents or not, at the liquidity on the exchanges and at the transparency of the information provided.

Tokenomics Under this criterion it is analyzed whether the project is inflationary or not, whether it has maximum supply, the percentage of supply released into the market at the time of the analysis, the rate of inflation per year, the distribution of supply in the portfolios as well as the vesting plan.

Ecosistem Development In this section is checked if the project has delivered on time what it proposed in the roadmap, the degree of participation in the project governance of the community, the activity and intensity of the developments published on github and what products or applications the team proposes to develop in the future.

Team & Developers It checks if the team is public, the quality of the team behind the project, the number of members on different domains, the experience in IT, finance and cryptography, the traceability of published information about team members and as well the number of developers in the project.

Product & Utility It checks if there are functional products, the number of users and the revenues generated by these products, the sustainability of the project and the usefulness offered in the cryptographic space and as well as in other fields of activity.

Partners & Investors It analyzes the partners and the degree of their involvement in the project, the capacity of investors and investment funds that can contribute substantially to the development of the ecosystem.

Go to Methodology

Content description

Social & Mass Media In this section was taken into consideration the intensity of the activity of the social media page of the administrators , the speed of the community growth, the user interaction with the pages and as well the number of media appearances in the most important trade publications.

Audit & Security In particular, the team looks if the project is audited, how extensive the audit is,  at the bug bounty program, if it had incidents or not, at the liquidity on the exchanges and at the transparency of the information provided.

Tokenomics Under this criterion it is analyzed whether the project is inflationary or not, whether it has maximum supply, the percentage of supply released into the market at the time of the analysis, the rate of inflation per year, the distribution of supply in the portfolios as well as the vesting plan.

Ecosistem Development In this section is checked if the project has delivered on time what it proposed in the roadmap, the degree of participation in the project governance of the community, the activity and intensity of the developments published on github and what products or applications the team proposes to develop in the future.

Team & Developers It checks if the team is public, the quality of the team behind the project, the number of members on different domains, the experience in IT, finance and cryptography, the traceability of published information about team members and as well the number of developers in the project.

Product & Utility It checks if there are functional products, the number of users and the revenues generated by these products, the sustainability of the project and the usefulness offered in the cryptographic space and as well as in other fields of activity.

Partners & Investors It analyzes the partners and the degree of their involvement in the project, the capacity of investors and investment funds that can contribute substantially to the development of the ecosystem.

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SCORE: 7.33
RATING: Good