Frax (FRAX) is a partially algorithmic stablecoin whose supply is partly backed by collateral and partly stabilized by an algorithm. The collateral ratio depends on the market price of the FRAX stablecoin. If FRAX trades at a price higher than $1, the protocol reduces the collateral ratio. If FRAX is trading at a price below $1, the protocol increases the collateral ratio. Frax Share (FXS) is a non-stable ERC-20 governance token for FRAX and has the following use cases. Governance: Grants token holders governance rights to add/adjust pools of collateralized assets, set mint/redemption fees, and change the update rate of the collateral rate. Pledge: Pledge in various pools to earn rebates at a preferred annualized rate of return. Minting and Redemption: FXS will be destroyed when FRAX is minted and FXS will be minted when FRAX is redeemed. Rewards: FXS rewards are available for users who deposit Uniswap LP tokens into a certain incentive pool.