Frax (FRAX) is a fractional algorithmic stablecoin partially backed by collateral and partially stabilized algorithmically. The ratio of collateralization and algorithmic depends on the market price of the FRAX stablecoin. If FRAX is trading at above $1, the protocol decreases the collateralization ratio. If FRAX is trading at under $1, the protocol increases the collateralization ratio.
Frax Share (FXS) is the native governance token associated with the Frax protocol. The Frax protocol is designed as a decentralized algorithmic stablecoin system built on the Ethereum blockchain. Frax aims to maintain a stable value by using a combination of collateralized assets and a governance mechanism to control the token's supply.