FRAX to Fiat Converter

The Frax Protocol is a fractional-algorithmic stablecoin system. It is open-source, permissionless, and operates entirely on-chain, currently implemented on Ethereum. The protocol aims to provide a scalable, decentralized, and algorithmic alternative to fixed-supply digital assets.

### Key Features of Frax:

Fractional-Algorithmic Design
Frax combines collateral-backed and algorithmic mechanisms to maintain stability. The collateral ratio adjusts dynamically based on market conditions—if FRAX trades above $1, the protocol reduces collateralization; if it trades below $1, the ratio increases.

Decentralized & Governance-Minimized
The protocol is community-governed and emphasizes algorithmic autonomy, minimizing the need for active management.

On-Chain Oracles
Frax v1 relies on Uniswap (for ETH, USDT, and USDC time-weighted average prices) and Chainlink (for USD price feeds) to ensure accurate pricing.

Dual-Token System
- FRAX: A stablecoin pegged to $1.
- FXS: The governance token that captures fees, seigniorage revenue, and excess collateral value.

Frax introduced a new category of stablecoins—fractional-algorithmic—distinct from traditional fiat-collateralized, crypto-overcollateralized, or purely algorithmic models.