Frax Finance · interactive mechanism simulation

Minting splits each FRAX into USDC collateral + burned FXS at the current Collateral Ratio (CR). The CR ticks down when FRAX trades above $1 and up when below — a market-driven feedback loop. Idle collateral is deployed by AMOs into yield. Drag the sliders, or trigger the 2023 USDC depeg shock to see how redeemability at par defended the peg.
Users mint / redeem Mint/Redeem engine CR: 82% collateral USDC vault 0 USDC FXS seigniorage 0 FXS burned (net) AMOs 0 USDC deployed CR controller reacts to peg price Curve pool FRAX $1.000
Mint / redeem events
0
FRAX supply
0
Collateral ratio
82%
Peg price
$1.000
FXS burned (net)
0
Parameters — edit me
1.2/s
0.6
82%
60%
Controls

Illustrative simulation. Reflects the researched Frax Finance mechanism (market-driven collateral ratio, FXS seigniorage burn, AMO-deployed reserves) with a CR floor near its historical ~82% low — the live protocol has since fixed CR at 100% via FIP-188. Event sizes and timing are randomized for visualization, not live onchain data. Part of The Onchain Experiment Atlas.