Frax Ether
FRXETH
Evaluation Score
Overall rating on a scale of 0-10
Dimension Breakdown
AI Analysis
Comprehensive evaluation of the token
FRXETH (Frax Ether) is the liquid staking token of the Frax Protocol, backed 1:1 by ETH and featuring a dual-token design where staking rewards and MEV route to sfrxETH while frxETH functions as a liquid WETH replacement and gas token on Fraxtal. The project demonstrates strong active development (8.0/10) with continuous roadmap execution (frxETH V2, BAMM), backed by an extensive audit pedigree (8.5/10) from Trail of Bits, Frax Security Cartel (Spearbit researchers), and EtherAuthority with no recorded exploits, hacks, or depeg events. Governance and team oversight (7.0/10) are led by public founders via veFXS and FraxGovernor modules, though operational reliance on core-managed validators and optimistic proposal execution presents key-person and centralization considerations. Tokenomics (6.5/10) and Market Use Case (7.0/10) reflect strong DeFi integrations and an overcollateralization insurance fund (2% protocol fee allocation), balanced against competitive headwinds in the liquid staking sector and the fact that bare frxETH does not earn yield directly. Community metrics (5.0/10) confirm healthy on-chain TVL (~$125M-$152M) and active holders, though public social engagement data remains less verifiable. No qualifying red-flag events were identified.
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Frax Ether (FRXETH)
Frax Ether (FRXETH) is a liquid staking derivative created by the Frax Protocol and founded by Sam Kazemian and Travis Moore. Operating natively on Ethereum with multi-chain deployments, the token functions as an ETH-pegged asset utilizing an elastic mint and burn mechanism backed 1:1 by staked Ether. FRXETH serves as a liquid Wrapped ETH (WETH) alternative within decentralized finance protocols and operates as the native gas token on Fraxtal, Frax's Layer 2 network. Under the protocol's dual-token staking architecture, bare FRXETH does not directly accrue staking rewards; instead, validator staking rewards and MEV are routed exclusively to the complementary staked Frax Ether (sfrxETH) vault.
Governance of the protocol is managed through veFXS using two governance frameworks: FraxGovernorAlpha for standard voting and FraxGovernorOmega for optimistic proposal execution, where proposals submitted by the core team succeed by default unless vetoed. To address validator slashing risks, the protocol retains a 2% allocation from staking yields to maintain an overcollateralization insurance fund. The codebase has undergone smart contract security audits by Trail of Bits, EtherAuthority, and the Frax Security Cartel (comprising lead security researchers from Spearbit), supporting continuous development toward frxETH V2 and BAMM mechanisms.
While the protocol has no recorded exploits, hacks, smart contract failures, or depeg events, several structural risks and market challenges exist. Centralization risks include the core team running all validator nodes under the v1 system and maintaining significant executive control through optimistic governance execution. Additionally, FRXETH operates in a competitive liquid staking market where circulating supply has contracted since 2023, leaving bare token holders reliant on external DeFi integrations or migration to sfrxETH to capture protocol yield.