$FXS

FXS is the governing token of the Frax Protocol network, an innovative project in the world of decentralized finance (DeFi) that aims to provide a balanced stablecoin that combines the traditional advantages of centralized and decentralized stablecoins. Frax Protocol works by using a hybrid mechanism based on two parts: the first part is the FRAX stablecoin, which is partially backed by reserve currencies such as USDC, and the second part is the FXS coin, which is the means of governance and balance in the system.

The value of FXS depends on the demand for FRAX and the activity within the system. If the demand for FRAX increases, FXS is burned to reduce the supply, causing its value to increase. Conversely, if the demand for FRAX decreases, FXS is distributed to increase the supply.

Frax Protocol is characterized by its great flexibility, as it combines centralized models such as USDC with decentralized models that rely on innovative algorithms to achieve price stability. This makes it a strong option for investors looking for a stablecoin that can withstand market volatility.

Using FXS, investors can vote on governance decisions within the network, such as amending protocol standards or introducing new improvements, giving them an active role in the development of the project.

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