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About Frax Share
Frax Share is a decentralized finance (DeFi) project that is built on the Ethereum blockchain.
It is a synthetic stablecoin that uses a fractional reserve system to maintain its value. The project was created by the team at Flux Protocol, which is an open-source protocol for creating and managing synthetic assets. Frax Share is designed to be a stablecoin that can be used for payments, trading, and other financial activities.
The Frax Share token (FXS) is the native token of the Frax protocol and it is used to govern the protocol and incentivize users. The FXS token also provides holders with a share of the fees generated by the protocol. The FXS token can be used to purchase Frax tokens, which are synthetic stablecoins pegged to different fiat currencies such as USD, EUR, GBP, JPY, etc.
The Frax protocol uses a fractional reserve system to maintain its value. This means that only a portion of each deposit into the system is backed by real-world assets such as fiat currencies or gold. The rest of the funds are held in reserve and can be used to cover any losses due to market volatility or other factors.
This helps ensure that Frax tokens remain stable in value over time. The Frax protocol also has an automated market maker (AMM) built into it which allows users to trade FXS tokens against other assets such as ETH or DAI without having to go through an exchange or broker. This helps make trading more efficient and cost-effective for users.
Additionally, users can earn rewards for providing liquidity on the AMM by staking their FXS tokens in liquidity pools.