Frax USD (FRXUSD) is a fiat redeemable, fully collateralized stablecoin issued by the Frax Finance Protocol. It operates on a hybrid model combining robust onchain mechanisms with governance approved enshrined custodians. These custodians hold equivalent cash reserves, allowing 1:1 minting and burning of frxusd. This innovative approach ensures its peg to the US Dollar. Users can seamlessly redeem FRXUSD for various underlying RWA backed custodian assets on demand, ensuring liquidity and trust in this vital digital asset within the Ethereum Ecosystem and beyond.

As a USD Stablecoin, frxusd serves as a reliable medium for payments, value transfer, and various DeFi applications across the Ethereum Ecosystem and supported networks like Sonic. Its stability makes it ideal for reducing volatility in cryptocurrency portfolios. A key use case is staking frxusd to obtain sfrxUSD, the yielding version of this digital asset. This allows users to earn competitive rewards through Frax Finance's benchmark rate strategy, which optimizes yield from diverse sources including carry trade, AMOs, and T-Bill venues, making FRXUSD a versatile token.

Frax USD (FRXUSD) distinguishes itself by utilizing governance approved enshrined custodians, which are real world entities that hold cash-equivalent reserves. These custodians facilitate the 1:1 minting and burning of FRXUSD by backing each token with $1.00 of provable reserves. This mechanism means FRXUSD is directly supported by a diverse array of RWA backed assets from entities like Blackrock BUIDL and Superstate USTB. This fiat backed stablecoin model enhances trust and stability, bridging traditional finance with the decentralized world of cryptocurrency on the blockchain.

frxUSD maintains its USD peg through a hybrid model combining institutional reserves and protocol stabilization tools not algorithmic mechanisms. Enshrined custodians like BlackRock and Superstate hold cash equivalent reserves (e.g., Treasury bills), allowing 1:1 minting/redeeming of frxUSD. The protocol further stabilizes through Frax Bonds (FXBs): Dutch auctioned zero coupon bonds that lock Legacy Frax Dollar until maturity, reducing circulating supply during depeg events. Real time arbitrage opportunities between custodian assets (e.g., BUIDL vs. USTB) and Curve/Uniswap liquidity pools provide additional peg defense. This structure avoids reliance on volatile crypto collateral or centralized operators.

Staking frxUSD as sfrxUSD introduces strategy allocation risk and smart contract exposure. The Benchmark Yield Strategy dynamically allocates to carry-trade, DeFi AMOs, or T-Bills each with unique vulnerabilities: 1) Carry-trade strategies face basis risk in derivatives markets, 2) DeFi AMOs are exposed to protocol hacks (e.g., Aave/Compound exploits), 3) T-Bill reserves carry regulatory uncertainty. The ERC-4626 vault smart contracts, while audited, present technical risk from potential reentrancy or oracle manipulation. However, sfrxUSD mitigates these via hourly strategy rebalancing, custodian diversification (BlackRock, FinresPBC), and non rebasing token design allowing instant redemptions without lockups.

Unlike USDC (centralized fiat reserves) or DAI (overcollateralized crypto assets), frxUSD employs a hybrid reserve model with institutional participation and algorithmic stabilization. Key differentiators: 1) Custodian Diversity: Reserves distributed across multiple regulated entities (Securitize, WisdomTree) vs. single entities, 2) On-chain Redemption: Direct 1:1 redemption without bank intermediation, 3) FXB Stabilizers: Bonds absorb volatility without liquidation cascades, 4) Yield Integration: Native yielding sfrxUSD avoids third-party protocols. Unlike DAI's crypto collateral, frxUSD uses off-chain cash equivalents with on-chain verification, and unlike USDC, its custodians are governance-approved and competing for redemptions.

Yes, frxUSD operates across 30+ blockchains via LayerZero's Omnichain Fungible Token (OFT) standard. Users can bridge frxUSD directly to chains like Arbitrum, Polygon, and Solana without wrapped assets. The cross-chain mechanism uses a dual lockbox design: Assets can be redeemed on both Ethereum and Fraxtal, with transfers secured through LayerZero's Ultra Light Nodes. For non-LayerZero chains, Fraxtal serves as a hub bridging to chains like zkSync routes through Fraxtal. This allows frxUSD integration in multi-chain DeFi (e.g., Nile Exchange on Linea, Delta Trade on NEAR) while maintaining collateralization.

Post North Star Hardfork, FRAX (renamed FXS) becomes Fraxtal's native gas token and governance cornerstone. Its roles expand to: 1) Gas Currency: Replaces ETH for transaction fees on Fraxtal, burning a portion of fees, 2) Governance Power: veFRAX replaces veFXS for voting on custodians, yield strategies, and treasury allocations, 3) Flox Capacitor: Locking FRAX boosts FXTL rewards and voting weight, 4) Reserve Asset: The protocol's Crypto Strategic Reserve will accumulate FRAX as a reserve asset. This transitions FRAX from a traditional governance token to a multi utility asset with gas, governance, and monetary properties.

The current Frax USD price is $1.00. The Frax USD price has changed by -0.028358711190733243% in the last 24 hours.

The current market capitalization is $121,870,732. This represents the total value of all circulating tokens at the current price.

There are currently 1,685 unique addresses holding Frax USD. The top 10 holders control approximately 81% of the total supply.

The 24-hour trading volume is $9,165,838. This represents the total value of all trades executed in the last 24 hours across all exchanges.

Frax USD is available for trading on various centralized exchanges (CEX) like Curve (Ethereum), Aerodrome SlipStream, Hydrex Integral and decentralized exchanges (DEX) like SwapX Algebra, Uniswap V4 (Unichain), Fraxswap (Ethereum). These platforms offer trading pairs with various cryptocurrencies and fiat currencies.

The primary contract address is 0xcacd6fd266af91b8aed52accc382b4e165586e29 on the ethereum blockchain. This is where the token's core functionality is implemented.

The all-time high for Frax USD was $1. This represents the highest price the token has ever reached.