Frax Price Index Price(FPI)

The Frax Price Index ($FPI) is the second stablecoin introduced by the Frax Finance ecosystem, following the widely used FRAX stablecoin. Its primary objective is to serve as a robust store of value that mirrors the inflation rate of a basket of consumer goods, specifically tracking the U.S. Consumer Price Index for All Urban Consumers (CPI-U). Unlike conventional stablecoins, which are typically pegged to a single fiat currency such as the U.S. dollar, $FPI is designed to preserve its value by adjusting to changes in the CPI inflation rate.

This innovative mechanism ensures that $FPI retains its purchasing power over time, making it especially appealing for transactions, value storage, and debt accounting within the decentralized finance landscape. By providing an inflation-adjusted value, $FPI is positioned as a solution for investors and users who are increasingly concerned about the diminishing value of traditional fiat currencies due to inflationary pressures.