FRAX is a decentralized stablecoin that pioneered the fractional-algorithmic model before evolving to full collateralization. Managed by Frax DAO with sophisticated AMO controllers for peg stability. Features sFRAX for yield-bearing deposits.
Market Cap
$273.4M
Peg Deviation
+0.778%
Regulatory Grade
C+
Regulatory Score
57/100
Issuer & Reserve Details
Issuer
Frax Finance
Issuer Type
Algorithmic Protocol
Treasury Transparency
On-Chain
Backing Type
Hybrid
Reserve CompositionEvolved from fractional-algorithmic to 100% collateralized (FRAX v3). Backed by USDC, sFRAX deposits, and Frax Bond (FXB) US Treasury strategy. On-chain via frax.finance.
Peg MechanismAMO (Algorithmic Market Operations) controllers manage peg. Direct redemption via protocol. FRAX v3 targets full collateralization.
Regulatory Scorecard
Reserve CompositionMixed reserve compliance
Partial12/20
Audit & TransparencyReal-Time (On-Chain) audits by Trail of Bits, Certik
Partial15/20
Redemption RightsCrypto-only redemption
Partial11/15
Issuer LicensingNo traditional license (DAO)
Non-Compliant2/15
Consumer ProtectionConsumer protections in place
Partial9/15
CLARITY ClassificationCrypto-backed — not a permitted payment stablecoin
Partial8/15
Reserve Assets
Overcollateralized Crypto, T-Bills (≤93 days)
Audit Frequency
Real-Time (On-Chain) by Trail of Bits, Certik
Redemption
Instant (On-Chain)
License
DAO / No License
Classification
Crypto-Collateralized
Backing Ratio
100%
Top Yields for FRAX
Source: DeFiLlama
| Platform | Chain | Type | Yield Source | APY | TVL | Safety | Links |
|---|---|---|---|---|---|---|---|
 convex-finance Audited |  Ethereum | DeFi | Vault Strategy | 19.30% | $433,124 | B · 73 | |
 stake-dao | Ethereum | DeFi | Unknown | 17.51% | $239,964 | D · 50 | |
 yearn-finance Audited | Ethereum | DeFi | Vault Strategy | 11.95% | $178,818 | B · 76 | |
convex-finance Audited | Ethereum | DeFi | Vault Strategy | 10.56% | $4.1M | B · 80 | |
 beefy | Ethereum | DeFi | Unknown | 10.13% | $1.5M | C · 57 | |
stake-dao | Ethereum | DeFi | Unknown | 10.13% | $2.3M | C · 57 | |
 curve-dex Multiple Audits | Ethereum | DeFi | LP Fees | 9.84% | $659,578 | B · 84 | |
 morpho-blue Multiple Audits | Ethereum | DeFi | Unknown | 8.43% | $789,181 | B · 84 |
Audit & Attestation History
No audit records available
Disclaimer: Compliance scores are for informational purposes only and do not constitute financial or legal advice. Regulatory scores are based on the GENIUS Act (S.1582) and CLARITY Act (H.R.3633) frameworks using publicly available information. The GENIUS Act takes effect no later than January 18, 2027. Always conduct your own research.
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