The Frax Protocol stands out as the pioneering fractional-algorithmic stablecoin system. It operates as an open-source, permissionless, and fully on-chain solution, currently functioning on Ethereum with potential cross-chain expansions in the future. The ultimate aim of the Frax protocol is to introduce a highly scalable, decentralized, algorithmic form of money, contrasting with fixed-supply digital assets like BTC. Key aspects of the protocol include: Fractional-Algorithmic Model: Frax distinguishes itself by blending collateral-backed portions with algorithmic portions within its stablecoin supply. The ratio of collateralization versus algorithmic components adjusts based on the market valuation of the FRAX stablecoin. Should FRAX trade above $1, the protocol decreases the collateral ratio; conversely, if FRAX trades below $1, the protocol increases the collateral ratio. Decentralized & Governance-Minimized: The protocol is governed by the community, highlighting a largely autonomous, algorithm-driven approach devoid of active management. On-Chain Oracles: Frax v1 relies on Uniswap (ETH, USDT, USDC time-weighted average prices) and Chainlink (USD price) oracles, ensuring full on-chain functionality. Two-Token System: FRAX serves as the stablecoin targeting a narrow band around $1 per coin, while Frax Shares (FXS) functions as the governance token, accumulating fees, seigniorage revenue, and excess collateral value. Prior to Frax, stablecoins were traditionally categorized into fiat-collateralized, cryptocurrency overcollateralized, and algorithmic models with no collateral. Frax marks the inception of a novel category—the fractional-algorithmic stablecoin—ushering in a distinct fourth classification.