Frax Finance
AuditedVerifiedFrax Finance is a multi-product DeFi family — FRAX/frxUSD stablecoins, frxETH/sfrxETH liquid staking, Fraxlend, FraxSwap, and the Fraxtal L2 — governed via veFXS and an on-chain dual-Governor model.
Active Risk Alerts
Live signals detected by Sentinel monitors across all five risk classes.
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Score history
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The Problem
Stablecoins historically traded a trilemma between decentralisation, capital efficiency and durability — pure-algo designs (UST) failed, fully-collateralised designs (USDC, USDT) introduced bank/censorship risk, and over-collateralised designs (DAI) were capital-inefficient.
The Solution
Frax pioneered the fractional-algorithmic model and AMOs (algorithmic market operations) as composable monetary policy, then expanded into a full ecosystem covering stablecoins (FRAX, frxUSD), LSTs (frxETH/sfrxETH), lending (Fraxlend), AMM (FraxSwap), and an OP-stack L2 (Fraxtal).
Why it Matters
Category-definer for fractional-algorithmic stablecoins and AMOs. First TWAMM AMM. One of the first DeFi protocols to ship its own L2. Multi-product moat with five years of operational data and zero asset-loss exploits.
Protocol Metrics
Related Research
View allFrequently asked questions about Frax Finance
What is Frax Finance?+
Frax Finance is a Stablecoin protocol operating on Ethereum, Fraxtal, Arbitrum, Optimism, Polygon, BNB, Avalanche, Solana. Frax Finance is a multi-product DeFi family — FRAX/frxUSD stablecoins, frxETH/sfrxETH liquid staking, Fraxlend, FraxSwap, and the Fraxtal L2 — governed via veFXS and an on-chain dual-Governor model.
How does Frax Finance work?+
Frax pioneered the fractional-algorithmic model and AMOs (algorithmic market operations) as composable monetary policy, then expanded into a full ecosystem covering stablecoins (FRAX, frxUSD), LSTs (frxETH/sfrxETH), lending (Fraxlend), AMM (FraxSwap), and an OP-stack L2 (Fraxtal).
Is Frax Finance safe?+
DeFi Sentinel rates Frax Finance AA with a safety score of 86/100, indicating very low risk. The score reflects five risk dimensions: smart contract & technical risk, economic design & market risk, governance & centralization, sustainability & competitive position, and reputation & social trust. Frax Finance has 16 audits on record. DeFi Sentinel's analysis flagged 1 high, 2 medium, 3 low risk alerts across Smart Contract & Technical Risk, Economic Design & Market Risk, Sustainability & Competitive Position and Reputation & Social Trust. As with all DeFi protocols, residual risk remains and users should review the full risk breakdown before depositing.
What is the safety score of Frax Finance?+
Frax Finance has a DeFi Sentinel safety score of 86/100 (rating AA), last updated September 16, 2026. The score is computed across smart contract & technical risk (30%), economic design & market risk (25%), governance & centralization (20%), sustainability & competitive position (15%), and reputation & social trust (10%).
Which chains does Frax Finance support?+
Frax Finance is deployed on Ethereum, Fraxtal, Arbitrum, Optimism, Polygon, BNB, Avalanche, Solana.
Has Frax Finance been audited?+
Yes. Frax Finance has 16 audit reports on record from firms including Certik, Trail of Bits, Trail of Bits. Audit reports and dates are linked under the Resources tab on this page.