Frax Share

Halal Rating :
Questionable
Last Price $2.48 Last updated:
Rank 279
1D Change -9.45 %
Market Cap $212.59m
Circulating supply 85,880,388
Maximum supply None
Crypto Overview Crypto Impact

Crypto Overview

Categories
  • DeFi
  • Seigniorage
  • Avalanche Ecosystem
  • Exnetwork Capital Portfolio
  • Olympus Pro Ecosystem
  • Arbitrum Ecosystem
  • Liquid Staking Derivatives

Overview

Frax Share (FXS) is the governance and value-accrual token of the Frax Protocol ecosystem, which includes the FRAX stablecoin and various DeFi products. FXS holders can participate in governance decisions and earn a portion of protocol fees.

Intended Utility

The primary intended utilities of FXS are: 1) Governance rights over the Frax protocol parameters and development, 2) Value accrual through protocol fee distribution, 3) Collateral backing for the FRAX stablecoin system.

Actual Utility

FXS is actively used for its intended purposes. On-chain data shows regular governance participation and staking activity. The token serves as an essential component in maintaining the FRAX stablecoin's stability through its algorithmic-fractional reserve system.

Token Distribution and Development

The token distribution includes allocations to team members and early investors with standard vesting schedules. The development team maintains active GitHub repositories and regularly deploys protocol updates. The project has established partnerships with major DeFi protocols and continues to expand its ecosystem.

Revenue Model Analysis

The protocol generates revenue through various mechanisms including swap fees, yield farming, and protocol-owned liquidity. While some aspects involve lending and yield generation, the core token utility is not primarily based on interest-bearing activities.

Crypto Impact

To assign a comfort level investing in Frax Share from a halal perspective we need to determine whether it has a net positive or negative impact.

Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Frax Share.

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