Staked Frax Ether

sfrxETH

sfrxETH is the staked version of frxETH designed to accrue the staking yield of the Frax ETH valiators. The exchange rate of frxETH per sfrxETH increases over time as staking rewards accrue to the vault.

Risk Rating
Best
$3,222.93
-1.41%
Summary
What we like
sfrxETH is the staked version of frxETH that accrues staking yield. All profit generated from Frax's ETH validators is distributed to sfrxETH holders.
What we like less
The frxETH contract is currently exposed to centralization risks as the admin has significant control over minting/burning functions and withdrawal of underlying staked ETH.
What it means for you
Offers you a liquid staked ETH that can potentially earn greater yield than competitors as not everyone will stake their frxETH to earn rewards.
Information
Blockchain
  • Ethereum
Key Metrics
  • Market Cap: $482.3M
  • Fully Diluted Valluation: $482.3M
  • FDV / MC: 1
  • Ranking inside Exponential (excluding stables): #32
  • Circulating Supply: 150,123
  • Total Supply: 150,123
  • Volume (24H): $28.5M
  • ATH: $7,545.09 (02/16/2023)
  • ATL: $1,147.58 (12/23/2022)
Risk Assessment
Best
Asset Strength

sfrxETH is a low-cap, fully collateralized asset. This asset is exposed to the underlying risks of Frax Ether, a protocol rated as Average.

Asset Tokenomics

sfrxETH has an uncapped supply but has inflation control or burn mechanisms in place. sfrxETH is the staked version of frxETH that accrues staking rewards. Its value increases over time relative to frxETH as staking yield accrues to the staking vault.

Dependencies

Frax Ether

Things to know about sfrxETH

What is sfrxETH used for?

sfrxETH is the staked version of frxETH that accrues staking yield. All profit generated from Frax ETH validators including staking rewards, transaction fees, and MEV (maximal extractable value), are distributed to sfrxETH holders. Users can exchange their frxETH for sfrxETH at any time by depositing into the sfrxETH vault. As validators accrue staking yield over time, an equivalent amount of frxETH is minted and added to the vault. sfrxETH holders can redeem their staking rewards by converting back to frxETH. The exchange rate of frxETH to sfrxETH thus increases over time as staking rewards are distributed to the vault. Holding sfrxETH entitles you to a proportional claim on an increasing amount of frxETH.

How does Frax Ether work

The Frax Ether system consists of three core components: frxETH, sfrxETH, and the Frax ETH minter. The underlying code for frxETH is largely forked from both the FRAX and FPI stablecoins. sfrxETH is obtained by first approving the sfrxETH contract as a frxETH spender, and then calling the mint function. As validators earn staking rewards, an equivalent amount of frxETH is minted and sent to the sfrxETH contract. This means the user may redeem a greater amount of frxETH than they initially minted. The Frax ETH minter mints frxETH when it receives ETH deposits. Whenever a deposit pushes the minter balance over 32 ETH, the contract automatically spins up a new validator. The protocol currently charges a 10% fee on all generated staking rewards.

How secure is Frax's liquid staking solution?

frxETH is designed to be a stablecoin that is loosely pegged to ETH. This means the price of frxETH could depeg from time to time based on current market conditions. Frax has also set the withdrawal address to the Frax multisig at launch.

sfrxETH Pools
Aura ETH Market Making
2.4%
Yield
$10M
TVL
Risk
C
Protocol
Aura
Chain
Ethereum
Curve TryLSD Market Making
5.9%
Yield
$5M
TVL
Risk
C
Protocol
Curve
Chain
Ethereum
Pendle ETH Market Making (12/25/24)
9.3%
Yield
$5M
TVL
Risk
B
Protocol
Pendle
Chain
Ethereum
Pendle ETH Principal Token (12/25/24)
5.6%
Yield
$5M
TVL
Risk
B
Protocol
Pendle
Chain
Ethereum