Compare Frax and Liquity stablecoin protocols. Understand their mechanisms, collateral ratios, and yield strategies.
Frax and Liquity both offer decentralized stablecoins but use different mechanisms. Frax is a fractional-algorithmic stablecoin while Liquity is a fully collateralized system.
Liquity requires 110% ETH collateral ratio. Frax uses a hybrid model with both crypto collateral and algorithmic components.
Frax generates yield through various DeFi strategies. Liquity offers LQTY token incentives for stability providers.