The Frax Protocol is the first fractional-algorithmic stablecoin system. Frax is open-source permissionless and entirely on-chain – currently implemented on Ethereum (with possible cross chain implementations in the future). The end goal of the Frax protocol is to provide a highly scalable decentralized algorithmic money in place of fixed-supply digital assets like BTC. The protocol incorporates the following – Frax is a unique stablecoin with parts of its supply backed by collateral and parts of the supply algorithmic. The ratio of collateralized and algorithmic depends on the market's pricing of the FRAX stablecoin. If FRAX is trading at above $1 the protocol decreases the collateral ratio. If FRAX is trading at under $1 the protocol increases the collateral ratio. Decentralized \u0026 Governance-minimized – Community governed and emphasizing a highly autonomous algorithmic approach with no active management. Fully on-chain oracles – Frax v1 uses Uniswap (ETH USDT USDC time-weighted average prices) and Chainlink (USD price) oracles. Two Tokens – FRAX is the stablecoin targeting a tight band around $1/coin. Frax Shares (FXS) is the governance token which accrues fees seigniorage revenue and excess collateral value.Before Frax stablecoins were divided into three different categories: fiat collateralized overcollateralized with cryptocurrency and algorithmic with no collateral. Frax is the first kind of decentralized stablecoin to classify itself as fractional-algorithmic ushering in the 4th and most unique category.