Frax Finance protocol
Overview
Frax Finance is a DeFi protocol built around the frxUSD stablecoin and the Fraxtal Layer-2 network. Its dollar stablecoin launched in 2020 as the fractional-algorithmic FRAX; it later moved to full collateralization and, in 2025, was rebranded to frxUSD (partly backed by tokenized U.S. Treasuries via BlackRock's BUIDL, tokenized by Securitize). In late 2025 the protocol also renamed its governance token FXS to FRAX on a 1:1 basis, making FRAX the unified gas, staking and governance token of the Fraxtal ecosystem. Complementary products include Fraxswap (an AMM), Fraxlend (a lending market) and frxETH liquid staking. (As of 2026-07-15.)
Within the DeFi Intel graph, Frax Finance connects to 11 tracked entities, most strongly to Frax USD, Hidden Hand, Stake DAO.
Relations
Top connections in the DeFi Intel knowledge graph (confidence-weighted, 10 of 11 total).
| Relation | Connected entity | Confidence |
|---|---|---|
issued_by | Frax USD | 95% |
redirects_emissions_via | Hidden Hand | 95% |
boosts_for | Stake DAO | 95% |
governs | Frax DAO | 95% |
issued_by | Frax Share (FXS) | 95% |
supports_token | veFXS | 95% |
governs | Fraxtal | 90% |
issued_by | Sfrax | 90% |
governs | Frax DAO | 90% |
built_on | Fraxlend | 85% |
Frequently asked questions
What is Frax Finance?
Frax Finance is a DeFi protocol that issues FRAX, a fractional-algorithmic stablecoin pegged to the US dollar. It maintains its peg through a combination of collateral reserves and an algorithmic mechanism that adjusts the collateral ratio dynamically.
What products does Frax Finance offer?
Frax Finance offers complementary products including a decentralized exchange (Fraxswap), a cross-chain bridge (Fraxferry), and a lending market (Fraxlend).
What tokens are issued by Frax Finance?
Frax Finance issues Frax USD (FRAX), Frax Share (FXS), and Sfrax.
Sources
- Frax Finance: FXS to be rebranded as FRAX, stablecoin FRAX to be converted to frxUSD
- Frax launches frxUSD stablecoin, backed by BlackRock's BUIDL (PR Newswire)
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