Question 1

What is Frax Ether (frxETH)?

Accepted Answer

Frax Ether (frxETH) is a liquid staking derivative created by Frax Finance. It allows users to mint a token pegged 1:1 to ETH, which can be held for exposure or staked into sfrxETH to earn validator rewards. frxETH also functions as the native gas token for Fraxtal, Frax’s Layer-2 blockchain. Unlike ETH staked directly into validators, frxETH provides liquidity and composability in DeFi while maintaining a loose peg to ETH.

Question 2

What is Frax Ether (frxETH) used for?

Accepted Answer

* **ETH Exposure**: Provides liquid exposure to ETH while maintaining flexibility within DeFi. 
* **Staking Yield**: Holders can convert frxETH to sfrxETH to earn validator yield, with about 90% of staking rewards distributed to sfrxETH holders.
* **Gas Payments**: Serves as the transaction fee token on the Fraxtal Layer-2 network. 
* **Protocol Sustainability**: A share of staking yield (~10%) supports the Frax treasury and a slashing insurance fund.

Question 3

Who created Frax Ether (frxETH)?

Accepted Answer

Frax Ether is developed by Frax Finance, a protocol known for its algorithmic stablecoin Frax (FRAX) and decentralized financial infrastructure. The Frax team, led by founder Sam Kazemian, launched frxETH as part of its broader ecosystem expansion into staking and L2 infrastructure.


frxETH	ERC20	ETH	0x5e8422345238f34275888049021821e8e08caa1f	2022-10-06
frxETH	ERC20	FRAX	0xfc00000000000000000000000000000000000006	2026-10-06