What is Frax (FRAX)?

Quick Facts

  • Type: Native utility and gas token of the Fraxtal blockchain
  • Formerly known as: Frax Shares (FXS)
  • Rebrand completed: January 2026, at a 1:1 ratio
  • Ecosystem: Frax Finance — a full DeFi stack with stablecoins, lending, and AMM
  • Fraxtal: An Optimism-based Layer 2 blockchain built by Frax Finance
  • Founded by: Sam Kazemian, Jason Huan, and Travis Moore
  • Launched: 2020 (as FXS); rebranded to FRAX in early 2026

Introduction

Frax (FRAX) is the native commodity asset and gas token of Fraxtal, the sovereign Layer 2 blockchain developed by Frax Finance. Formerly known as Frax Shares (FXS), the token was rebranded in a 1:1 token swap to consolidate the project's identity under a single, unified asset.

Frax Finance is one of the most ambitious DeFi protocols in the space, operating a full suite of financial infrastructure — from stablecoins and lending markets to an automated market maker and its own Layer 2 network.

History & Background

Frax Finance was first announced in 2019 under the name 'Decentral Bank' and launched its flagship stablecoin protocol in December 2020. The project was founded by Sam Kazemian, Jason Huan, and Travis Moore with a goal of creating the world's first fractional-algorithmic stablecoin.

The original two-token model featured the FRAX stablecoin alongside FXS, the governance and value-capture token. In December 2024, Frax Finance unveiled its 2025 Vision Roadmap, announcing that FXS would transition to become the new FRAX token, and the stablecoin FRAX would rebrand to frxUSD. The migration was completed in January 2026.

How Frax Works

FRAX (the token) functions as the scarce commodity asset of the Fraxtal blockchain. It serves as the native gas token for Fraxtal, an EVM-compatible Layer 2 chain built on Optimism technology.

Holders can lock FRAX to receive veFRAX, which provides cryptoeconomic security and governance voting rights over parameters within protocols like Fraxlend and Fraxswap. The token follows a fixed, unchangeable emission schedule, positioning it as a predictable monetary base for the ecosystem.

Tokenomics

FRAX is designed as a commodity asset rather than a typical governance token — functioning more like a base layer monetary unit similar to ETH within the Ethereum network. It is entirely issued natively on the Fraxtal blockchain.

Users who lock FRAX receive veFRAX, which decays over time and grants governance influence over select Frax Finance protocol parameters. This staking model rewards long-term participants and ties token utility directly to protocol activity.

Circulating supply ? 93.60 million FRAX
Reserved supply ? 19.82 million FRAX
FARMING
0xda2c338350a0e59ce71cdced9679a3a590dd9bec
1,049 FRAX
FRAX
0x63278bF9AcdFC9fA65CFa2940b89A34ADfbCb4A1
16.60 million FRAX
INVESTOR
0xa95f86fE0409030136D6b82491822B3D70F890b3
0 FRAX
MSIG
0x874a873e4891fB760EdFDae0D26cA2c00922C404
0 FRAX
REWARD
0x278dC748edA1d8eFEf1aDFB518542612b49Fcd34
573,154 FRAX
SADDLE
0x0639076265e9f88542C91DCdEda65127974A5CA5
3,873 FRAX
SUSHI
0xb4Ab0dE6581FBD3A02cF8f9f265138691c3A7d5D
32,258 FRAX
TEAM
0x8D4392F55bC76A046E443eb3bab99887F4366BB0
0.00000000 FRAX
TREASURY
0x9AA7Db8E488eE3ffCC9CdFD4f2EaECC8ABeDCB48
2.53 million FRAX
UNISWAP
0x3EF26504dbc8Dd7B7aa3E97Bc9f3813a9FC0B4B0
40,059 FRAX
UNISWAP
0xa29367a3f057F3191b62bd4055845a33411892b6
18,782 FRAX
UNISWAP
0xF22471AC2156B489CC4a59092c56713F813ff53e
20,227 FRAX
UNISWAP
0xF37057823910653a554d996B49E3399DC87fAE1b
1,313 FRAX
YIELD
0xed2647Bbf875b2936AAF95a3F5bbc82819e3d3FE
1,242 FRAX
Total supply ? 99.68 million FRAX
Max supply ? 99.68 million FRAX
Updated 4d ago

Ecosystem & Use Cases

The broader Frax Finance ecosystem includes several interconnected products:

  • frxUSD — the USD-pegged stablecoin (formerly FRAX), backed by tokenized U.S. Treasuries
  • frxETH — a liquid staking token pegged to ETH, used as gas on Fraxtal
  • Fraxlend — a permissionless decentralized lending market
  • Fraxswap — a native AMM featuring time-weighted average market maker (TWAMM) orders
  • AMO contracts — Algorithmic Market Operations that manage collateral and generate revenue

FRAX sits at the center of this ecosystem as the base monetary unit powering Fraxtal's operations.

Team, Governance & Community

Frax Finance was founded by Sam Kazemian, a prominent DeFi builder, along with Jason Huan and Travis Moore. The protocol is governed on-chain, where veFRAX holders can vote on key parameters across the Frax Finance DeFi stack.

The community engages through the official Frax Telegram, Twitter/X account, and governance forums. Frax Finance has built a sizable following in the DeFi space, known for its technical innovation and regular protocol upgrades.

Advantages

  • Unified token design — consolidating FXS and the FRAX brand into one coherent asset reduces friction for users and integrators
  • Native L2 integration — FRAX serves as the gas token of Fraxtal, giving it deep, fundamental utility
  • Full DeFi stack — the ecosystem spans stablecoins, lending, AMM, and liquid staking under one roof
  • Fixed emission schedule — a predictable, immutable issuance model supports long-term monetary planning
  • veFRAX staking — long-term holders gain governance rights and potential yield from protocol activity

Risks & Challenges

  • Rebrand complexity — transitioning from FXS to FRAX while also rebranding the stablecoin to frxUSD introduces potential user confusion
  • Smart contract risk — as with all DeFi protocols, undiscovered bugs in smart contracts could pose security threats
  • Stablecoin peg risk — the stability of frxUSD and related products directly affects confidence in the broader ecosystem
  • Competitive landscape — Frax Finance competes with well-established DeFi protocols for liquidity, users, and developer mindshare
  • L2 adoption — Fraxtal's success as a blockchain depends on attracting sustained developer and user activity

Long-Term Vision

Frax Finance's stated ambition is to become the decentralized central bank of crypto — providing all the primitive financial tools that a modern monetary system requires, built entirely on-chain. With Fraxtal as a high-performance Layer 2, frxUSD as a compliant stablecoin, and FRAX as the ecosystem's base monetary asset, the protocol is positioning itself as foundational infrastructure for the next wave of DeFi adoption.

Frequently Asked Questions

FRAX is the native utility and gas token of the Fraxtal Layer 2 blockchain, developed by Frax Finance. It was formerly known as Frax Shares (FXS) and was rebranded in a 1:1 token swap in January 2026.

Frax Shares (FXS) was rebranded to FRAX in early 2026 as part of Frax Finance's 2025 Vision Roadmap. All FXS holders received FRAX at a 1:1 ratio, with major exchanges handling the conversion automatically.

FRAX is the native utility and gas token of the Fraxtal blockchain (formerly FXS), while frxUSD is the USD-pegged stablecoin (formerly the FRAX stablecoin). The rebrand separated these two roles into clearly distinct tokens.

Fraxtal is an EVM-compatible Layer 2 blockchain built on Optimism technology by Frax Finance. FRAX serves as its native gas token, and the chain is designed to support high-throughput DeFi applications.

FRAX can be used to pay gas fees on Fraxtal, and holders can lock it to receive veFRAX, which provides governance voting rights over parameters in protocols like Fraxlend and Fraxswap.

Frax Finance was founded by Sam Kazemian, Jason Huan, and Travis Moore. The project was first announced in 2019 and launched its protocol in December 2020.

veFRAX is received when users lock their FRAX tokens for a set period. It grants governance voting rights over select Frax Finance protocol parameters and can provide boosts in certain farming activities.

Frax Finance operates a full DeFi stack including frxUSD (a USD stablecoin), frxETH (a liquid staking token), Fraxlend (decentralized lending), Fraxswap (an AMM with TWAMM), and Fraxtal (its own Layer 2 blockchain).