Frax Finance

 

Frax Finance is a well-known DeFi platform for developing an algorithmic stablecoin called FRAX, along with its other products and ecosystem across multiple blockchains. The company was founded by Sam Kazemain, Travis Moore, and Jason Huan. The platform gained popularity due to its early nature as one of the first fractional-algorithmic stablecoin projects. Over time, the project evolved into an entire DeFi ecosystem that offered a range of services focused on stablecoins, cryptocurrency loans, staking, decentralized exchanges, and liquidity pools.

 

Frax Finance Details

 

Attribute	Details
Native Blockchain	Ethereum
Own Blockchain	Fraxtal (Ethereum Layer 2)
Governance Token	FRAX (formerly FXS) (legacy governance token); governance is exercised through veFXS voting power.
Primary Stablecoin	frxUSD (formerly FRAX)
Additional Stable Assets	FPI (Frax Price Index), frxETH, sfrxETH, sfrxUSD
Protocol Type	Stablecoin protocol, Lending protocol, Automated Market Maker (AMM), Liquid Staking, Cross-chain Infrastructure, Layer 2 Blockchain
Liquid Staking Solution	frxETH and sfrxETH
Wallet Support	Any EVM-compatible wallet such as MetaMask, Rabby, Coinbase Wallet, Rainbow, WalletConnect-supported wallets
Supported Blockchains	Ethereum, Fraxtal, Arbitrum, Optimism, Base, Polygon, BNB Chain, Avalanche, Fantom and multiple LayerZero-supported networks.
Cross-chain Technology	LayerZero Omnichain Fungible Token (OFT) standard and Fraxferry
Staking Products	sfrxETH, sFRAX
Yield Products	Staking, Lending, Liquidity Provision
Governance Voting	veFXS holders vote on protocol proposals, treasury management, smart contract parameters, and protocol upgrades.
Developer Resources	Documentation, GitHub repositories, APIs, smart contract documentation
Main Use Cases	Stablecoin issuance, decentralized lending, liquid ETH staking, decentralized trading, yield generation, governance, cross-chain asset transfers

 

Key Features of Frax Finance

 

• • The native stablecoin of the ecosystem, FRAX, tries to sustain a price point around 1 USD.
    
  • frxETH allows users to participate in Ethereum liquid staking while keeping ETH liquid.
    
  • Fraxlend supports decentralized crypto borrowing and lending without centralized platforms.
    
  • Fraxswap enables token swaps, liquidity management, and AMM trading inside the ecosystem.
    
  • FXS gives holders governance rights for voting on protocol upgrades and the ecosystem.
    
  • The ecosystem operates across multiple blockchains, including Ethereum, Polygon, Avalanche, and Fantom.
    
  • Users can earn rewards through staking, lending, liquidity pools, and stablecoin strategies.

 

Frax Finance Native Token - FRAX

 

• • Current Native Token - FRAX
  • Previous Native Token - FXS (Frax Share)
  • Token Migration - FXS was upgraded to FRAX on a 1:1 basis in 2025.
  • Primary Utility - Native gas token of the Fraxtal blockchain, ecosystem utility token, staking asset, and governance through veFRAX.
  • Governance Mechanism - veFRAX (formerly veFXS)
  • Blockchain - Native to the Fraxtal blockchain
  • Use Cases - Pay gas fees, staking, validator security, governance voting (via veFRAX), ecosystem incentives, and protocol participation.

 

Frax Finance Products

 

Product	Category
frxUSD	Stablecoin
sfrxUSD	Savings Stablecoin
frxETH	Liquid Staking Token
sfrxETH	Yield-Bearing Staking Token
FPI (Frax Price Index)	Inflation-Indexed Stablecoin
Fraxtal	Ethereum Layer 2 (L2) modular rollup network
FraxNet	Payments & Financial Network
Fraxlend	Lending Protocol
Fraxswap	Decentralized Exchange (DEX)
Frax Governance (FRAX Token)	Governance Token