Frax Finance Is Preparing to Airdrop a CPI-Linked Stablecoin

An algorithmic stablecoin tied to U.S. consumer prices will be given to holders of cvxFXS, veFXS stakers, participants in the FXS liquidity pool and tFXS stakers.

AccessTimeIconFeb 18, 2022 at 1:15 p.m. UTC
Updated May 11, 2023 at 7:14 p.m. UTC

Frax Finance is scheduled to distribute its latest stablecoin, the Frax Price Index (FPI), to holders and stakers of its various tokens – as long as they own one on Feb. 20.

  • Frax says the FPI is an “inflation resistant” algorithmic stablecoin, designed to fluctuate in value in line with U.S. government-published consumer price index (CPI) data.
  • Data is sourced from the Bureau of Labor Statistics’ monthly inflation report and is pushed to the blockchain by an oracle provided by Chainlink.
  • An algorithmic stablecoin means that the value is derived from a constantly changing basket of underlying digital assets.
  • The FPI will be denominated in dollars, Frax Finance founder Sam Kazemian explained to CoinDesk in an interview, simply because they are a unit everyone is familiar with.
  • As an example, should inflation hold at 7%, by the end of the year the token will be worth $1.07
  • “We want to be a stablecoin protocol where we have a dollar stablecoin, as well as the successor to the dollar,” he said.
  • Eventually, holders of the governance token will be able to vote on the weighting of the basket of goods used by FPI to measure inflation and whether changes to the basket are required.
  • Frax hasn't set a date for the airdrop. A snapshot will take place Feb. 20 to count the number of eligible wallets.
  • Kazemian may reveal more details during a talk on Saturday at EthDenver, an industry event taking place Feb. 11-20.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Read more about