February 11th, 2022

Disclaimer: This is not official information, only what I collected from looking at the contracts and talking to ppl.

The purpose of this post is to try to explain a little bit of how Frax works and its Protocol Controlled Value. Things I won’t explain: Collateral Ratio, Frax Minting and Redemption, Frax Stability Mechanism.

TL;DR; Frax owns more than $1 for each Frax that needs backing.