Question 1

What is Frax Staked Ether (sfrxETH)?

Accepted Answer

Frax Staked Ether (sfrxETH) is a liquid staking derivative token developed by Frax Finance on the Ethereum blockchain. It represents staked Ether (ETH) within the Frax ecosystem and is designed to accrue staking rewards over time. sfrxETH operates as an ERC-4626-compliant vault token, allowing users to earn staking yield without directly managing validator infrastructure.

Question 2

What is sfrxETH used for?

Accepted Answer

sfrxETH serves multiple purposes within the decentralized finance (DeFi) ecosystem:
 
* **Staking Rewards:** By holding sfrxETH, users earn a share of the staking rewards generated by Frax's Ethereum validators. The value of sfrxETH increases over time relative to frxETH, reflecting the accumulated rewards.
 
* **Liquidity:** sfrxETH provides liquidity to staked ETH, enabling users to participate in DeFi activities such as lending, borrowing, and trading while their assets continue to earn staking rewards.

Question 3

Who created Frax Staked Ether (sfrxETH)?

Accepted Answer

sfrxETH was created by Frax Finance, a decentralized finance protocol known for its algorithmic stablecoin system. The Frax team developed sfrxETH as part of their broader Frax Ether system, which includes frxETH (a stablecoin pegged to ETH) and the Frax ETH Minter. The protocol is governed by the Frax community, with decisions made through governance mechanisms involving the Frax Share (FXS) token.


sfrxETH	ERC20	ETH	0xac3E018457B222d93114458476f3E3416Abbe38F	2022-10-06
sfrxETH	ERC20	FRAX	0xfc00000000000000000000000000000000000005	2026-10-22