Accept Frax Payments

The Frax Protocol pioneers the fractional-algorithmic stablecoin system, operating as an open-source, permissionless, and entirely on-chain platform, currently functioning on Ethereum (with potential cross-chain expansions ahead). Its ultimate objective is to introduce a scalable, decentralized, algorithm-based currency, challenging fixed-supply digital assets like BTC. Key principles of the Frax protocol encompass:

Fractional-Algorithmic Model: Frax stands out as a distinct stablecoin, blending collateral-backed and algorithmic components in its supply. The ratio of collateralized versus algorithmic portions adapts based on the market price of the FRAX stablecoin. When FRAX exceeds $1, the protocol trims the collateral ratio; when FRAX falls below $1, the protocol boosts the collateral ratio.

Decentralization & Governance Minimalism: Community governance takes precedence, emphasizing a highly autonomous, algorithm-driven approach with minimal active management.

On-Chain Oracles: Frax v1 integrates Uniswap (ETH, USDT, USDC time-weighted average prices) and Chainlink (USD price) oracles, ensuring a fully on-chain approach.

Two-Tokens System: FRAX serves as the stablecoin, targeting a narrow band around $1/coin, while Frax Shares (FXS) act as the governance token, accruing fees, seigniorage revenue, and surplus collateral value.

Before Frax, stablecoins fell into three distinct categories: fiat-collateralized, overcollateralized with cryptocurrency, and algorithmic without collateral. Frax emerges as the inaugural decentralized stablecoin categorizing itself as fractional-algorithmic, pioneering the fourth and most innovative stablecoin category.