The full-stack DeFi protocol: pioneered fractional stablecoins, liquid staking, and now operates its own L2.
Frax Finance pioneered the fractional-algorithmic stablecoin model and has evolved into a full-stack DeFi ecosystem. In 2026, Frax operates its own L2 (Frax Chain), issues frxETH (liquid staking ETH), sfrxETH (auto-compounding staking), and FRAX v3 is fully collateralized with on-chain assets plus real-world assets.
The Frax ecosystem is designed to be self-sustaining: FRAX stablecoin provides the core utility, frxETH/sfrxETH enable liquid staking, and Frax Chain offers low-cost settlement for DeFi. FXS is the governance and fee-accrual token, rewarding long-term protocol participants.
Unlike older stablecoin models, FRAX v3 is over-collateralized with real assets, making it one of the safest stablecoins in DeFi. The protocol has been battle-tested since 2020 and continues to innovate around staking, governance, and chain interoperability.
FRAX is backed by on-chain collateral (USDC, ETH) and real-world assets. Every FRAX can be redeemed for $1 worth of collateral.
Deposit ETH to receive frxETH (liquid staking token). Your ETH earns staking yield while remaining liquid.
Stake frxETH to receive sfrxETH, which auto-compounds staking yield (~5% APY). sfrxETH balance increases daily.
Use FRAX and other assets on Frax Chain for ultra-low-cost DeFi transactions.
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