Staked Frax Ether
SFRXETH
Evaluation Score
Overall rating on a scale of 0-10
Dimension Breakdown
AI Analysis
Comprehensive evaluation of the token
SFRXETH (Staked Frax Ether) serves as the yield-bearing, auto-compounding ERC-4626 vault token for Frax Finance's liquid staking ecosystem. Active development remains robust (7.5/10), evidenced by ongoing multi-chain deployments across Ethereum, Arbitrum, and Fraxtal, as well as roadmap execution such as frxETH V2. Tokenomics (7.5/10) are solid with fully collateralized minting mechanics, transparent distribution of staking rewards per FIP-122, and no team unlock overhangs. Security and audit history (8.5/10) is notably strong, supported by reputable third-party audits from Trail of Bits, Certora, and Frax Security Cartel, with a clean track record free of historical exploits or depeg events. Team and governance (7.0/10) and market adoption (6.5/10) reflect a functional product with transparent leadership, though operational centralization remains high due to protocol-operated validators and withdrawal controls. Community engagement (6.0/10) is anchored primarily at the broader Frax protocol level rather than through standalone retail channels. No qualifying red-flag events, migrations, or data gaps 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 Staked Frax Ether (SFRXETH)
Staked Frax Ether (SFRXETH) is an ERC-4626 yield-bearing vault share token within Frax Finance's liquid staking ecosystem. Operating primarily on Ethereum, the token is also deployed and bridged across multiple networks, including Arbitrum One, Optimism, Polygon, BNB Chain, Moonbeam, Fantom, and Fraxtal. The token functions as the liquid staking derivative receipt that accrues staking rewards generated by the Frax validator network.
The mechanics of sfrxETH are fully collateralized, minting strictly upon the deposit of frxETH, which itself is minted against deposited ETH. Unlike rebasing staking tokens, sfrxETH utilizes an auto-compounding vault mechanism where the exchange rate of sfrxETH per frxETH increases over time as staking rewards are collected. In accordance with Frax Improvement Proposal 122 (FIP-122), generated staking yields are distributed with 90% going to sfrxETH stakers, 8% allocated to protocol fees, and the remainder directed to an insurance fund. The underlying Frax Ether codebase and related modules have undergone security reviews by audit firms including Trail of Bits, Certora, and the Frax Security Cartel.
While the protocol has no recorded history of smart contract exploits or insolvencies, it presents operational and market risks. A primary consideration is operational centralization, as Frax directly manages the validator infrastructure and maintains treasury-controlled withdrawal parameters rather than utilizing a fully permissionless validator network. Additionally, multi-chain deployments introduce external bridge dependencies, and secondary market trading volume and adoption remain lower compared to dominant liquid staking derivatives in the sector.