FRAX is a decentralized stablecoin that operates on the Ethereum blockchain. Unlike traditional stablecoins that are backed by fiat currency in a 1:1 ratio, FRAX utilizes a decentralized algorithmic approach to maintain its stability. By dynamically adjusting the supply of FRAX through smart contracts, the protocol aims to maintain a stable value. The FRAX ecosystem also includes a governance token called FXS, which allows holders to participate in decision-making processes and potentially earn rewards. FRAX provides users with a stable and decentralized alternative to traditional fiat-pegged stablecoins."