Frax

Overview

FRAX is a dollar-pegged stablecoin that uses AMO smart contracts and permissionless, non-custodial subprotocols as stability mechanisms. The two internal subprotocols used as stability mechanisms are Fraxlend, a decentralized lending market and Fraxswap, an automated market maker (AMM) with special features. The external subprotocol used as a stability mechanism is Curve. Additional subprotocols and AMOs can be added with governance allowing FRAX to incorporate future stability mechanisms seamlessly as they are discovered

Agent Information

Regulatory Considerations

Based on our analysis, Frax operates in the infrastructure sector with low regulatory risk. Key considerations for APAC jurisdictions:

• Hong Kong: Generally lower regulatory burden for infrastructure services
• Singapore: May fall under PSA exemptions
• Japan: Depends on specific functionality