Frax Finance is a DeFi protocol that issues and supports three stablecoins, ranging from FRAX tied to USD, Frax Price Index (FPI) tied to a consumer goods basket and FraxEther (frxETH) tied to ETH.

The protocol utilizes three interconnected subprotocols, namely Fraxswap to balance collateral and spread liquidity, Fraxlend for loan originations and collateral assets and Fraxferry for token transfers across multiple blockchains. The management of these protocols is done through the native Frax Share (FXS) token and FPIS token that govern the Frax and FPI ecosystems respectively.