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What is Frax?

Frax functions as a decentralized and open-source protocol that is seamlessly integrated on-chain, operating on Ethereum as well as various other blockchain platforms. The core aim of the Frax protocol is to create a scalable and decentralized algorithmic currency that can serve as an alternative to fixed-supply digital currencies like Bitcoin. This groundbreaking methodology signifies a notable transformation in the construction of stablecoins. Unlike many existing stablecoin systems that strictly adhere to being either completely collateralized or fully algorithmic without any support, Frax presents a hybrid approach. Conventional collateralized stablecoins typically encounter custodial risks or require significant overcollateralization on-chain. In a distinctive move, Frax merges both backed and algorithmic elements in its supply, making it the first stablecoin to incorporate a segment of its supply as floating or unbacked. This innovative structure not only improves the currency's stability but also facilitates the emergence of a more versatile and responsive financial ecosystem, ultimately promoting broader adoption and usability across diverse applications.

What is Ducat Protocol?

Ducat is a Bitcoin Layer 1 credit protocol that allows users to borrow dollar-pegged assets against their BTC while retaining non-custodial control of the collateral. Borrowers lock Bitcoin into a 2-of-2 Taproot vault and can receive either UNIT or USDC without bridging or wrapping their BTC. The protocol's loan logic, vault creation, liquidation rules, and redemptions are enforced through Bitcoin transactions and Bitcoin Script. Ducat lets users choose a collateral ratio based on their risk tolerance and supports borrowing up to 62.5% of the BTC value deposited in a vault. Instead of charging recurring interest, the protocol applies a one-time 7% minting service charge when UNIT is issued. Borrowers can repay at any time and redeem their Bitcoin, with the protocol stating that BTC redemption can occur within a single Bitcoin block. UNIT is a dollar-pegged stablecoin backed by overcollateralized BTC and issued directly on Bitcoin Layer 1. The protocol also supports USDC conversion for users who prefer external dollar liquidity rather than holding UNIT. Position management tools provide collateral tracking, liquidation-price monitoring, real-time BTC price updates, and dynamic health indicators from a central dashboard. If a vault falls below the protocol's collateral threshold, third parties can participate in liquidations by recapitalizing the position and receiving BTC at a discount. Ducat is designed for Bitcoin holders, digital asset investors, institutions, and decentralized finance users who want Bitcoin-backed liquidity while keeping borrowing activity anchored to the Bitcoin base layer.

Media

Media

No images available

Integrations Supported

Arbitrum
Avalanche
BNB Smart Chain (BSC)
Binance
CoinEx
Curve Finance
Fantom
Gate.io
HitBTC
MEXC
Matcha
MetaMask
Risk Harbor
SushiSwap
Uniswap
vfat.tools

Integrations Supported

Bitcoin

API Availability

API Availability

Pricing Information

Pricing not provided

Pricing Information

Pricing not provided
Free Version
Free Trial Offered?

Supported Platforms

SaaS

Supported Platforms

SaaS

Customer Service / Support

Web-Based Support

Customer Service / Support

Not specified

Training Options

Documentation Hub

Training Options

Not specified

Company Facts

Organization Name

Frax

Date Founded

2019

Company Location

Cayman Islands

Company Website

frax.finance/

Company Facts

Organization Name

Ducat Protocol

Date Founded

2000

Company Location

United Kingdom

Company Website

ducatprotocol.com

Categories and Features

Cross Chain Bridges

Not specified

Crypto Lending (DeFi)

Not specified

Crypto Staking

Not specified

Yield Farms

Not specified

Categories and Features

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