Frax USD is a stablecoin designed to maintain its value through a fiat-redeemable and fully-collateralized structure. Issued by the Frax Finance Protocol, it employs a hybrid model that combines traditional custodial mechanisms with innovative onchain technology. Governance-approved custodians are responsible for minting and redeeming Frax USD, ensuring that each token is backed by cash-equivalent reserves. This approach enhances the stability and security of the token, making it a reliable option for users in both decentralized finance (DeFi) and conventional financial systems. The advanced onchain mechanisms developed by Frax Finance play a crucial role in maintaining the token's usability and stability. By integrating these features, Frax USD aims to provide a seamless experience for users seeking to engage with digital assets. Overall, Frax USD serves as a versatile and secure stablecoin, bridging the gap between the crypto space and traditional finance while offering users a dependable medium of exchange.