$FRAX stands out as one of the more innovative stablecoin ecosystems, combining algorithmic mechanisms with collateral backing. Unlike traditional stablecoins, Frax dynamically adjusts its collateral ratio, aiming to maintain price stability while remaining capital-efficient. A decline in FRAX often reflects broader DeFi uncertainty rather than instability in the protocol itself. As decentralized stablecoins become more important in a multi-chain future, Frax remains a key player due to its flexibility and deep DeFi integrations.
