FRAX vs DAI— Side by Side
| Feature | FRAX | DAI |
|---|---|---|
| Backing | Hybrid | Crypto-Collateralized |
| Issuer | Frax Finance | MakerDAO / Sky Protocol |
| Launched | 2020 | 2017 |
| Chains | 8 | 8 |
When to Use Each
FRAX
- +Pioneer of fractional-algorithmic design — influenced UST, FRAX, and many successors
- +AMO system actively earns yield on collateral through Curve, Convex, and Aave deployments
- +Frax ecosystem extends to frxETH, sfrxETH, Fraxtal L2, and FPIS — creating network effects
DAI
- +Oldest battle-tested decentralized stablecoin — survived multiple market crashes since 2017
- +Governance fully on-chain via MKR token holders — no single controlling entity
- +Over-collateralized by diversified assets including ETH, WBTC, stETH, and US Treasuries