# Frax Finance > The future of digital money Frax Finance is a stablecoin infrastructure company that issues frxUSD, a digital dollar backed by tokenized US Treasury assets. It serves financial institutions, fintechs, and DeFi users seeking compliant access to onchain dollars. Frax Finance is a financial technology company that builds stablecoin infrastructure for onchain finance. Its core offering, frxUSD, is a digital dollar backed by tokenized US Treasury assets, designed to be minted, redeemed, and used across decentralized applications. The company targets financial institutions, fintechs, and enterprises seeking compliant access to digital dollars alongside individual users of decentralized finance. The platform addresses the need for a transparent, yield-bearing stable asset that bridges traditional finance and onchain markets. frxUSD is minted on a one to one basis against a range of accepted stablecoins, bank transfers, and tokenized Treasury funds, and holders can earn yield derived from the underlying Treasury collateral. The company publishes reserve information to support this backing model. Beyond the stablecoin, Frax Finance operates Fraxtal, a rollup blockchain built to support scalable, low-fee execution for stablecoin-related applications, and FraxNet, a non-custodial platform for minting, redeeming, and earning yield on frxUSD across multiple networks. Additional protocols within its ecosystem cover lending, liquidity provision, and staking. The company serves institutional partners, developers building on its network, and everyday users seeking access to treasury-backed digital dollars. - Type: Company - Sector: Finance - Status: Active - Founded: 2019-05-01 - Profile: https://thegrid.id/profiles/frax_finance ## Products - [Fraxtal](https://thegrid.id/profiles/frax_finance): Fraxtal is a Layer 2 blockchain built on the OP stack that settles transactions back to Ethereum for security while using FRAX as its gas token. It provides an EVM-compatible execution environment for decentralized applications within the Frax ecosystem. The network features blockspace incentive programs that reward users and developers with points redeemable for protocol rewards. (L2, Live) - [Fraxnet](https://thegrid.id/profiles/frax_finance): Fraxnet is a cross-chain infrastructure platform that enables minting and redemption of frxUSD across multiple blockchains and financial institutions. It uses established cross-chain messaging standards to allow protocol-native transfers without custodial or synthetic bridging, and includes identity verification for regulated onboarding. The platform also supports direct bank account integration for converting fiat into frxUSD. (Cross-chain Infrastructure, Live) - [Fraxswap](https://thegrid.id/profiles/frax_finance): Fraxswap is a decentralized exchange based on an automated market maker model that adds time-weighted average market maker order execution for large trades over time. It is used for protocol rebalancing, liquidity provision, and trustless execution of sizeable trades without significant price impact. The same application surface also functions as the Fraxtal Bridge, allowing users to move assets between the Fraxtal network and other supported chains. (Decentralised Exchange, Live, Main Product) - [Fraxlend](https://thegrid.id/profiles/frax_finance): Fraxlend is a decentralized lending protocol that allows permissionless creation of isolated lending pairs for Frax stablecoins against a range of collateral assets. Borrowers deposit collateral to draw loans while lenders supply liquidity and earn algorithmically determined interest. The protocol enables custom risk parameters per pair, letting new collateral assets onboard to the Frax ecosystem without pooled contagion risk. (Decentralised Borrowing & Lending, Live) - [BAMM](https://thegrid.id/profiles/frax_finance): BAMM, or Borrow-AMM, is a decentralized lending module that lets borrowers rent liquidity for automated leverage management without relying on external price oracles. It combines lending and automated market-making mechanics into a single contract system to manage collateral pricing internally. The product supports frxUSD-denominated borrowing against ecosystem collateral assets such as liquid staking tokens. (Decentralised Borrowing & Lending, Live) - [Fraxferry](https://thegrid.id/profiles/frax_finance): Fraxferry is a cross-chain bridge that transfers Frax ecosystem tokens between blockchains using a batched transaction system with a settlement period of roughly one to two days. It relies on a permissioned operator model in which watchdog accounts can dispute suspicious batches during a challenge window before execution, prioritizing security over speed. The bridge operates through its own dedicated application separate from the main Frax trading interface. (Bridge, Live) - [FXB](https://thegrid.id/profiles/frax_finance): FXB, or Frax Bonds, is a zero-coupon bond product that lets users purchase discounted bonds through an auction and redeem them at face value in frxUSD upon maturity. Investors acquire bonds below par during scheduled auctions and hold the associated token until its fixed maturity date, at which point it becomes redeemable one to one for the underlying stablecoin. The product provides a fixed-income instrument within the Frax ecosystem, accessed through its own dedicated auction interface and settled through a distinct token type per maturity. (Decentralised Borrowing & Lending, Live) ## Assets - [Frax USD (frxUSD)](https://thegrid.id/profiles/frax_finance): frxUSD is a USD-pegged stablecoin issued by Frax Finance. It is used for payments, DeFi collateral, and cross-chain transactions across multiple blockchains. The stablecoin uses a hybrid model with governance-approved enshrined custodians who mint and redeem frxUSD by holding tokenized treasury reserves, allowing real-world entities to custody backing assets while maintaining onchain mechanisms. (Stablecoin) - [Frax (FRAX)](https://thegrid.id/profiles/frax_finance): FRAX is the native token of the Fraxtal blockchain, rebranded from Frax Share (FXS) in April 2025. It is used to pay transaction fees and will be used to secure the network through validator staking in a future upgrade. The Frax Burn Engine permanently removes tokens from ecosystem activities like domain registrations and transaction fees, creating deflationary pressure to counterbalance the tail emission schedule that starts at 8% annual inflation and decreases by 1% yearly until reaching 3%. (Utility) - [Frax Ether (frxETH)](https://thegrid.id/profiles/frax_finance): frxETH is a liquid staking token representing staked ETH on Frax Finance. It is used as collateral in DeFi protocols, for liquidity provision, and as the native gas token on Fraxtal. Unlike typical liquid staking tokens, frxETH does not automatically earn staking rewards—holders can stake it for sfrxETH to receive validator yields, creating a dual-token system that separates liquidity from yield generation. (Liquid Staking Tokens (LSTs)) - [Staked Frax Ether (sfrxETH)](https://thegrid.id/profiles/frax_finance): sfrxETH is a liquid staking token representing staked frxETH in the Frax Finance vault. It is used to earn staking rewards from Ethereum validators operated by Frax Finance, accruing value from staking yields, transaction fees, and MEV. The token operates as an autocompounding vault where holders maintain a proportional claim on an increasing amount of frxETH as rewards accumulate, similar to Aave's aUSDC and Compound's cUSDC. (Vault Tokens) - [Frax Price Index (FPI)](https://thegrid.id/profiles/frax_finance): FPI is a stablecoin pegged to a basket of consumer goods as defined by the US CPI-U average. It is used to denominate transactions, value, and debt while maintaining purchasing power against inflation. A Chainlink oracle feeds CPI data on-chain to automatically adjust FPI's redemption price, allowing the token's value to track inflation by increasing during inflationary periods or decreasing during deflation. (Stablecoin) - [Frax Price Index Share (FPIS)](https://thegrid.id/profiles/frax_finance): FPIS is the governance token of the Frax Price Index (FPI) stablecoin, which is pegged to a basket of consumer goods based on the US CPI-U. It is used to vote on FPI operations and entitles holders to seigniorage and excess yield from the treasury. FPIS is set to be phased out by March 22, 2028 and convertible thereafter to FXS, making it a temporary governance mechanism within the broader Frax ecosystem. (Governance) - [Staked Frax USD (sfrxUSD)](https://thegrid.id/profiles/frax_finance): sfrxUSD is a yield-bearing vault token representing staked frxUSD in the Frax Finance ecosystem. It is used to earn yield that automatically accrues to the token's redemption value, and can always be redeemed for the underlying frxUSD with no unstaking fee or price impact. The token utilizes a Benchmark Yield Strategy that dynamically allocates staked funds between carry-trade, algorithmic market operations, and Treasury bill strategies to target the highest risk-adjusted yield available in current market conditions. (Vault Tokens) - [Fraxtal Points (FXTL)](https://thegrid.id/profiles/frax_finance): FXTL is a points-based incentive system within the Fraxtal ecosystem. It is earned by creating and interacting with smart contracts, spending gas on transactions, and holding specific assets, with rewards distributed to both users and the contracts they interact with. Points will be tokenized no later than twelve months after chain genesis, either as a separate staking token or converted to FXS tokens at a specified ratio. (Digital Reward Assets) - [Liquid FRAX (LFRAX)](https://thegrid.id/profiles/frax_finance): LFRAX is a USD-pegged stablecoin denomination used within the Frax Finance ecosystem. It serves as the underlying asset for Frax Bond (FXB) tokens, which are zero-coupon bonds auctioned at a discount and redeemable one-to-one for LFRAX upon maturity. When users purchase FXBs, their LFRAX is locked in smart contracts until the bond matures, at which point the contracts automatically convert the bonds back to LFRAX at full face value. (Stablecoin) - [Staked FRAX (SFRAX)](https://thegrid.id/profiles/frax_finance): SFRAX is an ERC4626 vault token representing staked FRAX deposits in Frax Finance. It is used to earn weekly yield distributions denominated in FRAX stablecoins, with the token's redemption rate increasing over time as rewards accumulate. The token's value appreciates automatically as yield accrues, allowing holders to redeem an increasing amount of FRAX per SFRAX over time. (Vault Tokens) - [Frax Bitcoin (frxBTC)](https://thegrid.id/profiles/frax_finance): frxBTC is a planned wrapped Bitcoin token for the Frax Finance ecosystem, backed by the same institutional custody partners as frxUSD. It is intended to serve as collateral in lending markets and for liquidity provision across Frax-supported chains once live. The official site lists it as coming soon, with the token not yet available for minting or trading. (Wrapped Tokens) - [Legacy Frax Dollar (FRAX (Legacy))](https://thegrid.id/profiles/frax_finance): FRAX (Legacy) is a USD-pegged stablecoin originally issued by Frax Finance, now deprecated following the North Star upgrade. It was used for payments, DeFi collateral, and liquidity provision across multiple blockchains. The original FRAX token was renamed to Legacy Frax Dollar to make way for frxUSD as the protocol's primary stablecoin, with holders able to migrate their tokens through the official interface. (Stablecoin) - [Vote-Escrowed FRAX (veFRAX)](https://thegrid.id/profiles/frax_finance): veFRAX is the vote-escrowed governance token of Frax Finance created by locking FRAX for up to four years. It is used to vote on protocol parameters across the Frax ecosystem and to receive protocol revenue distributions in sfrxUSD. Holders who lock their tokens for longer periods receive greater voting power, aligning governance influence with long-term commitment to the protocol. (Governance) ## Links - [Main](https://frax.com) - [Media Kit/branding](https://docs.frax.com/protocol/integration/brand) - [Documentation](https://docs.frax.com) - [Governance](https://snapshot.org/#/s:frax.eth) - [Forum](https://gov.frax.finance) - [Privacy policy](https://app.frax.finance/privacy) - [Terms of Service](https://app.frax.finance/terms) - [Twitter / X](https://x.com/fraxfinance) - [Discord](https://discord.gg/fraxfinance) - [Telegram](https://t.me/fraxfinance) - [GitHub](https://github.com/FraxFinance) - [Substack](https://news.frax.com) - [Twitter / X](https://x.com/frax) ## Legal This data is provided under two licensing models. Model 1 - open data. The open data core is licensed under the Open Database License (ODbL) — a copyleft/share-alike license allowing free use, modification, and sharing for any purpose. Attribution is required: include "Powered by The Grid" linking to https://thegrid.id wherever the data is used. 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