Algo Stables · Review
ActiveFrax Review 2026: An AMO-Based Dollar Stablecoin
Frax is a dollar-pegged stablecoin that uses AMO smart contracts, a lending market and an AMM to hold its peg. Public sources show a modest TVL and a price near $1, but they say little about the current product lineup.
By the DappsAtlas editorial team · Updated
DappsAtlas score
6.8/10
Good
Our verdict on Frax
6.8/10Frax suits DeFi users who want to understand a stablecoin built on AMOs, a lending market and an AMM instead of a plain reserve model. Its main strength is a clearly described stability design with Fraxlend, Fraxswap and Curve. The main caveat is the modest $30.1 million TVL, dependence on several connected protocols and sparse current-product detail. Check the audits and live data before using it.
Score breakdown
How Frax scores
- Security
- 6.5/10
- Ease of use
- n/a
- Fees
- n/a
- Features
- 7.0/10
Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.
What is Frax?
Frax is a dollar-pegged stablecoin on Ethereum. DefiLlama files it under algo-stables and describes it as using AMO smart contracts and permissionless, non-custodial subprotocols to keep its peg. Its homepage tagline is "The Financial Engine of the Internet".
The stability design relies on Fraxlend, a decentralized lending market, and Fraxswap, an AMM with special features. Curve is the external protocol it names. Governance can add more mechanisms later.
DefiLlama shows about $30.1 million in TVL, down 8.3% over seven days, and two listed audits. Public reporting shows FRAX trading near $0.99 with a market cap of about $273.6 million, though these are third-party snapshots. Its homepage is nearly empty, so details of the current product lineup were not confirmed.
How Frax works
FRAX is a stablecoin meant to stay at one US dollar. Instead of relying only on a single reserve, it uses AMO smart contracts, which are contracts that run set market operations to help support the peg. The DefiLlama description calls these permissionless and non-custodial.
Two internal subprotocols support this: Fraxlend, a lending market, and Fraxswap, an AMM. An AMM is a pool-based exchange where users trade against liquidity rather than an order book. Curve, a large external stablecoin exchange, is the external mechanism the description names.
Governance can add more subprotocols and AMOs over time. This lets the protocol adjust its stability tools, but it also means holders depend on governance decisions.
6 features
Key features
01
Dollar-pegged stablecoin
FRAX is designed to trade at one US dollar and is classed by DefiLlama as an algo-stable.
02
AMO smart contracts
Algorithmic market operations contracts act as stability mechanisms, per the DefiLlama description.
03
Fraxlend lending
A decentralized lending market that serves as an internal stability mechanism for FRAX.
04
Fraxswap AMM
An automated market maker with special features, used as an internal subprotocol. Public reporting shows a pools interface for adding liquidity.
05
Curve integration
Curve is the external subprotocol the description names as a stability mechanism.
06
Governance-extensible design
Governance can add further subprotocols and AMOs, so the stability design can be extended.
Pros and cons
What we like
- Clear stated mechanism: AMOs plus Fraxlend, Fraxswap and Curve as stability tools
- Described as permissionless and non-custodial in its subprotocols
- Two audits listed on DefiLlama
- Price shown near $1 in third-party data
- Governance can add new stability mechanisms as they are found
- Has its own token (FRAX) and an established presence on DefiLlama
Watch out for
- Only about $30.1 million in TVL on DefiLlama, with a 7-day change of -8.3%, which is small for a stablecoin ecosystem
- Reliance on several subprotocols (Fraxlend, Fraxswap, Curve) adds smart-contract and dependency risk
- Public sources list only two audits and give no detail on scope or dates
- Governance can add new AMOs and subprotocols, so the risk profile can change over time
- Third-party data shows low 24h trading volume, which may mean thin liquidity on some venues
- Its homepage provided is minimal, so the current product lineup could not be confirmed from it
Frax fees
The project does not publish fee figures for minting, redeeming, lending or swapping. Fraxswap and Fraxlend would each have their own fee structures, and Ethereum gas costs apply to any on-chain action.
To see current fees, check the relevant interface or documentation on the official site before transacting. Fee scores are left blank because no numbers were provided.
Is Frax safe?
DefiLlama lists two audits, but the project does not say who performed them, what they covered or when. Audits reduce risk but do not remove it. Smart-contract bugs, oracle problems and failures in connected protocols such as Curve could affect the peg.
The project does not mention hacks or incidents, and no regulatory status is stated. Stablecoins can lose their peg under stress, and mechanisms that rely on governance can change over time. Do your own research and only use funds you can afford to lose.
6 steps
How to get started with Frax
- 1
Read the official site and documentation to confirm which Frax products are currently live.
- 2
Check the audit reports and recent TVL on a neutral dashboard such as DefiLlama.
- 3
Set up an Ethereum-compatible wallet and fund it with ETH for gas.
- 4
Verify the FRAX contract address from official sources before buying or swapping.
- 5
Start with a small amount and review the fees shown in the interface before confirming.
- 6
If providing liquidity or lending, read how each subprotocol works first, because each carries separate risks.
Who Frax is for
Frax is for DeFi-literate users who want exposure to a dollar stablecoin with a mechanism-driven design and who are comfortable evaluating smart-contract and governance risk. It is less suited to anyone who wants a simple, fully fiat-backed stablecoin with minimal moving parts.
Frax FAQs
What is Frax?
FRAX is a dollar-pegged stablecoin. According to DefiLlama, it uses AMO smart contracts and permissionless, non-custodial subprotocols as stability mechanisms rather than relying on a single issuer's reserves.
How does FRAX keep its peg?
The DefiLlama description names Fraxlend, a decentralized lending market, and Fraxswap, an automated market maker, as internal mechanisms. Curve is named as the external one. Governance can add more.
What is the current FRAX price?
Public reporting showed a price of about $0.99, with an all-time high of $2.36 and a market cap of about $273.6 million. These are snapshots from a third-party page and will change.
Is Frax safe?
DefiLlama lists FRAX on Ethereum and shows two audits. It does not describe the audit scope, so check the audit reports and the protocol's documentation before depositing funds. No stablecoin is risk-free.
How much value is locked in Frax?
DefiLlama reports about $30.1 million in TVL, down 8.3% over seven days. TVL moves with market conditions, so check a live dashboard.
Is Frax the same as the fractions app or the medical tool in public reporting?
No. The Frax that appears in some public reporting, ExploreLearning Frax, is a fractions-learning app and the FRAX fracture risk tool is a medical calculator. Neither is related to the Frax stablecoin.
Compare
Frax alternatives
Mento V2 is the app for Mento, an open-source Celo protocol that mints local-currency stablecoins and lets users swap and manage them.
SPOT Cash is an Ethereum protocol that tranches AMPL into a low-volatility, no-peg flatcoin token, aimed at DeFi users seeking fee yield via Uniswap V3.
Frax FPI is an algorithmic stablecoin pegged to the US CPI-U consumer basket, aimed at holders who want purchasing power preserved on-chain.
Generic is a stablecoin-as-a-service protocol issuing GUSD, backed 1:1 by USDC, USDT and USDS, with onchain yield and an FHE privacy pool for networks and apps.
Basis Cash is an uncollateralized algorithmic stablecoin on Ethereum that uses shares and bonds to try to hold a 1 USD peg, with small TVL.
SigmaUSD (AgeUSD) is a crypto-backed algorithmic stablecoin on the Ergo blockchain, built by the Ergo Foundation, EMURGO and IOG.
Same category
More Algo Stables
Ostable is an Obyte-based platform for bonded stablecoins, interest tokens and stability fund shares, built on bonding curves for experienced DeFi users.
Ampleforth’s AMPL is an Ethereum-based elastic-supply token for users interested in a CPI-adjusted purchasing-power target.
Beanstalk is an Arbitrum stablecoin protocol that uses credit and incentives to target a $1 price for its uncollateralized Bean token.
Blindex is a multi-currency, partially collateralized algorithmic stablecoin platform on Rootstock, with a very small TVL and its own BDX token.
TiTi Protocol is a small algorithmic stablecoin project issuing TiUSD with use-to-earn rewards on Ethereum, Base and zkSync Era.
Bdollar is an algorithmic stablecoin protocol on BNB Chain for users exploring supply-based peg mechanisms and their risks.
Same chain
More on Ethereum
Lido is a liquid staking protocol where users stake ETH and receive stETH, a reward-earning token usable across DeFi, governed by LDO holders.
Aave V3 is a non-custodial DeFi lending protocol on 21 chains where users earn interest on deposits or borrow against collateral.
Uniswap V4 is the latest Uniswap DEX version with hooks and concentrated liquidity, running on 22 chains for self-custody token swaps and liquidity provision.
Uniswap V3 is a non-custodial decentralized exchange protocol for token swaps and concentrated liquidity provision across 40+ chains.
DeFi Saver is a non-custodial tool for managing and automating leveraged lending positions across major DeFi protocols on Ethereum and layer-2 networks.
OKX is a major centralized crypto exchange for spot and derivatives trading, earn products and a Web3 wallet, with its own OKB token.
Guides
Guides that mention Frax
Blockchain
Base Blockchain Guide: How Coinbase's Layer 2 Works in 2026Base is Coinbase's Ethereum layer-2 network, built on the OP Stack and known for low fees and native USDC. This guide covers how it works, how to get funds onto it, and what to check before you use it.
dApp basics
x402 Protocol Explained: HTTP 402 Micropayments for Web3 and AIx402 revives the long-unused HTTP 402 Payment Required status code so software can pay for web resources with stablecoins in a single request. This guide covers how it works, who it serves, and where the hype outruns the reality.
How we checked
Sources
Last updated . Spotted an error? Tell us and we will correct it.