Frax

Frax began in 2020 as a fractional-algorithmic experiment, part backed by collateral and part held to peg by market incentives. That hybrid proved fragile across the sector, and in early 2023 Frax Finance's DAO voted to retire the algorithmic portion and lift the collateral ratio to 100 percent or more. Today FRAX holds its dollar peg through algorithmic market operations, real-world asset reserves, and arbitrage rather than a promise of buyback. Holders have no direct redemption right: like fiat itself, FRAX gives no claim on a specific asset, so the peg rests on open-market trading and the protocol's collateral backing rather than an issuer window. The token lives across roughly eighteen chains, from Ethereum and Solana to Frax's own Fraxtal rollup, making it one of DeFi's more widely deployed decentralized dollars and a fixture of onchain liquidity.