# Frax Finance > The future of digital money Frax Finance is a stablecoin issuer and decentralized finance ecosystem. It lets users mint, redeem, and earn yield on a digital dollar backed by tokenized US Treasury assets, alongside its own blockchain and onchain lending and trading protocols. Frax Finance is a stablecoin issuer that builds 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. The stablecoin is minted one to one against 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 for scalable, low-fee execution, and FraxNet, a non-custodial platform for minting, redeeming, and earning yield across multiple networks. Additional protocols cover lending, liquidity provision, liquid staking of Ether, and fixed-term bonds, with governance run by holders of its native token. Its users include institutional partners, developers building on its network, and everyday users seeking access to treasury-backed digital dollars. - Type: Company - Sector: DeFi - 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 that settles to Ethereum and uses FRAX as its gas token. It provides an EVM-equivalent execution environment for decentralized applications, with transaction data posted through a custom data availability layer to lower fees. Blockspace incentive programs reward users and developers with points for deploying contracts, interacting with applications, and spending gas on the network. (L2, Live) - [FraxNet](https://thegrid.id/profiles/frax_finance): FraxNet is a stablecoin issuance platform for minting and redeeming frxUSD across multiple blockchains and financial institutions. It accepts stablecoins, bank transfers, and tokenized Treasury funds, and uses cross-chain messaging standards for protocol-native transfers without custodial or synthetic bridging. Users and institutions that complete identity verification can access Treasury revenue sharing and bank redemptions. (Stablecoin Issuer, Live, Main Product) - [Fraxswap](https://thegrid.id/profiles/frax_finance): Fraxswap is a decentralized exchange based on an automated market maker model with an embedded time-weighted average market maker for large orders. Long-term orders are split into small trades that execute gradually against the pool, limiting price impact on sizeable trades. It is used for protocol rebalancing, liquidity provision, and trustless execution of large trades across multiple blockchains. (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 buy discounted bond tokens at auction and redeem them at face value upon maturity. Participants buy bonds below par with frxUSD during scheduled auctions, and each maturity is issued as its own token that converts one to one into the Legacy Frax Dollar stablecoin at maturity. The product provides a fixed-income instrument within the Frax ecosystem, accessed through its own auction interface. (Decentralised Borrowing & Lending, Live) - [Frax Name Service](https://thegrid.id/profiles/frax_finance): Frax Name Service is a decentralized naming service on Fraxtal that lets users register human-readable usernames linked to their wallet addresses. Registered names resolve to addresses and can store profile records, replacing long hexadecimal addresses in transfers and applications. Developers can resolve names through its contracts and subgraph to display usernames inside their own applications. (Decentralised Identity, Live, Main Product) - [Frax Ether](https://thegrid.id/profiles/frax_finance): Frax Ether is a liquid staking protocol that lets users stake Ether and receive frxETH, a liquid token pegged to Ether. Holders can use frxETH across decentralized finance or stake it into a vault token that accrues validator rewards, separating liquidity from yield. A lending pool lets validator operators borrow staked Ether to run additional validators, with a redemption queue for converting back to Ether. (Liquid Staking, Live, Main Product) ## 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 Fraxtal, a Layer 2 network on Ethereum, issued by Frax Finance. It is used for paying transaction fees on Fraxtal, locking for vote-escrowed governance power, and as a wrapped token deployed on multiple blockchains. Its supply is permanently capped, with protocol spending limited by annual budget caps rather than ongoing inflation. (Native) - [Frax Ether (frxETH)](https://thegrid.id/profiles/frax_finance): frxETH is a liquid staking token issued by Frax Finance representing staked Ether. It is used as collateral in lending markets, for liquidity provision, and as a cross-chain asset deployed on multiple blockchains. Holding frxETH alone does not earn staking rewards, as holders stake it for sfrxETH to receive validator yield, creating a dual-token system that separates liquidity from yield. (Liquid Staking Tokens (LSTs)) - [Staked Frax Ether (sfrxETH)](https://thegrid.id/profiles/frax_finance): sfrxETH is a vault token representing frxETH deposits in the Frax Finance staking vault. It is used to earn Ethereum validator rewards, including staking yields, transaction fees, and MEV, and as yield-bearing collateral across multiple blockchains. The vault compounds automatically, so each sfrxETH redeems for a growing amount of frxETH as rewards accrue. (Vault Tokens) - [Frax Price Index (FPI)](https://thegrid.id/profiles/frax_finance): FPI was a stablecoin issued by Frax Finance that was pegged to a basket of consumer goods measured by the US CPI-U index. It was used to denominate transactions, value, and debt in a unit designed to keep purchasing power against inflation. An oracle fed inflation data onchain to adjust its redemption price, and the system has since been wound down with minting disabled and its reference price frozen. (Stablecoin) - [Frax Price Index Share (FPIS)](https://thegrid.id/profiles/frax_finance): FPIS is the governance token of the Frax Price Index system, issued by Frax Finance. It is used to vote on FPI operations and can be locked to gain vote-escrowed governance power in the wider Frax ecosystem. The token is being phased out, with holders able to convert it into FRAX at a fixed ratio once the conversion window opens. (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 the points system of the Fraxtal network, recorded onchain by Frax Finance. Points are earned by deploying and interacting with smart contracts, spending gas, and holding specific assets, with rewards shared between users and the contracts they use. The points serve as a permanent record of network activity, with conversion into FRAX rewards postponed until set network growth milestones are reached. (Digital Reward Assets) - [Staked FRAX (SFRAX)](https://thegrid.id/profiles/frax_finance): SFRAX is a vault token representing Legacy Frax Dollar deposits in the Frax Finance staking vault. It was used to earn weekly yield distributions, with its redemption rate rising as rewards accrued. The vault has been superseded by sfrxUSD, which replaced it on Fraxtal and other networks, while legacy deposits remain redeemable on Ethereum. (Vault Tokens) - [Frax Bitcoin (frxBTC)](https://thegrid.id/profiles/frax_finance): frxBTC is a wrapped Bitcoin token being developed by Frax Finance, with contracts deployed on Ethereum and Fraxtal. It is designed for use as collateral in lending markets and for liquidity provision across Frax-supported networks. The token is backed by the same institutional custody partners as frxUSD and has not yet been made available for minting. (Wrapped Tokens) - [Legacy Frax Dollar (LFRAX)](https://thegrid.id/profiles/frax_finance): LFRAX is the original USD-pegged stablecoin issued by Frax Finance, now named the Legacy Frax Dollar. It was used for payments, DeFi collateral, and liquidity provision across multiple blockchains, and remains the settlement asset for maturing FXB bonds. It has been superseded by frxUSD as the protocol's primary stablecoin and is being wound down, with holders migrating through onchain liquidity pools. (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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