Legacy Frax Dollar

Legacy Frax Dollar is the current name of the original stablecoin that Frax Finance designed to be pegged to the US dollar. The token launched in 2020 with a partially algorithmic model, in which part of the collateral was covered by assets and the rest algorithmically through the protocol's own token. Issued on Ethereum, FRAX was bridged to many EVM networks over time.

After the period in which confidence in algorithmic stablecoins was shaken, the Frax community decided to move FRAX to a fully collateralized structure. The ecosystem was later reorganized: the old governance token FXS was renamed FRAX and took on the role of gas token for the Fraxtal network, while the original stablecoin was renamed Legacy Frax Dollar and moved to legacy product status. Frax's current dollar stablecoin became frxUSD, backed by reserves at regulated custodians. Because the FRAX symbol can now refer to two different assets, care is needed to avoid confusion when searching by symbol.

For a stablecoin in legacy status, the deciding factors are whether the peg is maintained, whether the protocol continues to support redemption and collateral, and how fast liquidity shifts to newer products. As pools on decentralized exchanges become shallower, deviations from the dollar may occur. The Legacy Frax Dollar page on Lzzo.com shows DefiLlama's US dollar reference price; the chart is also drawn from the same source's historical data.