Frax is an innovative approach to stablecoins, designed to deliver the stability of fiat currencies through a decentralised platform. Conceived by Sam Kazemian, Frax Finance launched the FRAX stablecoin in 2020, introducing the concept of an algorithmic, partially-collateralised stablecoin. FRAX differentiates itself by balancing two contrasting mechanisms—collateralisation and algorithmic control—to maintain its peg to the US dollar. This unique hybrid model adjusts the ratio of collateral and algorithmic supply dynamically based on market demand, ensuring both stability and capital efficiency. The project further enriches its ecosystem with the FXS governance token, empowering holders to participate in critical decisions, such as adjustments to collateral ratios and inclusion of new collateral types. Frax's innovative approach positions it as a pioneering solution in the stablecoin landscape, offering users reliable value preservation without sacrificing decentralisation.