A stablecoin backed partially by reserves and partially by algorithmic mechanisms. Combines capital efficiency of algorithmic models with some collateral security. FRAX pioneered this approach.
A stablecoin backed partially by reserves and partially by algorithmic mechanisms.
Combines capital efficiency of algorithmic models with some collateral security.
FRAX pioneered this approach.
This is a key building block of decentralized finance. Understanding it helps you navigate DeFi protocols safely, evaluate yield opportunities, and avoid common pitfalls.