Frax Finance (Frax for short), formerly known as Decentral Bank, is a fractional algorithm stablecoin protocol. Frax is an open-source, permissionless, fully on-chain protocol that currently runs on Ethereum (cross-chain operations may be possible in the future). The ultimate goal of the Frax protocol is to provide a highly scalable, decentralized algorithmic currency to replace fixed-supply digital assets such as BTC. The name of the stablecoin FRAX comes from the stability mechanism of "Fencoin-algorithm". The ratio of collateral and algorithm depends on the market pricing of the FRAX stablecoin. When the trading price of FRAX is above $1, the agreement will reduce the collateral ratio. When the trading price of FRAX is below $1, the protocol will increase the collateral ratio.