Frax Price Index Share Price(FPIS)

Frax Price Index Share (FPIS) acts as a governance mechanism for the Frax Price Index (FPI) stablecoin. Unlike traditional stablecoins, which are typically pegged to a single fiat currency, FPI is uniquely linked to a diverse basket of real-world consumer goods, reflective of the US Consumer Price Index for All Urban Consumers (CPI-U). This approach aims to maintain the purchasing power of the stablecoin while ensuring stability in various market conditions.

Holders of FPIS tokens benefit from their economic connection to the Frax Share (FXS) token, comprising a dual-layered staking model that enhances the overall ecosystem’s functionality. By holding FPIS, investors gain access to seigniorage—a monetary benefit derived from the issuance of new stablecoins—thus enjoying a stake in the profitability generated by the FPI treasury.