Crypto Gloss

Frax Share

Frax Share (FXS) is the governance and value-accrual token of Frax Finance, the protocol behind the FRAX stablecoin and multiple DeFi financial primitives including the frxETH liquid staking derivative and the Fraxtal L2 chain.

Stat Value
Ticker FXS
Price $0.43
Market Cap $41.10M
24h Change +2.0%
Circulating Supply 95.42M FXS
Max Supply 100.00M FXS
All-Time High $42.80
Contract (Ethereum) 0x3432...64d0
Contract (Fantom) 0x7d01...af5a
Contract (Polygon Zkevm) 0x6b85...cace
Contract (Moonriver) 0x6f1d...0e98
Contract (Evmos) 0xd817...4a9c
Contract (Solana) 6LX8Bh...W7ct
Contract (Harmony Shard 0) 0x0767...c14c
Contract (Polygon Pos) 0x1a3a...9062
Contract (Binance Smart Chain) 0xe48a...b9ee
Contract (Arbitrum One) 0x9d2f...88a7
Contract (Avalanche) 0x214d...e387

via ChangeNow · T&CsPrice data from CoinGecko as of 2026-04-14. Not financial advice.

How It Works

Frax Finance began as the first fractional-algorithmic stablecoin — a hybrid model between fully collateralized stablecoins (like USDC) and purely algorithmic designs (like the failed UST/LUNA). FRAX was partially backed by USDC collateral and partially stabilized by FXS as an algorithmic component.

Evolution of the Frax model:

  • Frax v1 (2020): Fractional-algorithmic FRAX, partially collateral, partially algorithmic. FXS was burned when minting FRAX at less than full collateralization, and vice versa when redeeming.
  • Frax v2: Moved toward full collateralization (AMO — Algorithmic Market Operations) after Terra/Luna collapse damaged confidence in algorithmic components. Frax accumulated USDC and other assets algorithmically.
  • Frax v3: Full collateralization; FRAX backed by real-world assets (US Treasuries) and on-chain assets, with no algorithmic component. Also introduced frxUSD, a new yield-bearing stablecoin.
  • frxETH / sfrxETH: Frax’s liquid staking token for Ethereum. Users deposit ETH to receive frxETH (liquid, tradeable) or sfrxETH (yield-bearing, capturing all ETH staking rewards from the pool).
  • Fraxtal L2: An Ethereum L2 built by Frax Finance using the OP Stack, launched in 2024, using FRAX as the gas token.

FXS role: FXS captures revenue from the Frax ecosystem — protocol fees from AMOs, frxETH staking revenue, and Fraxswap trading fees are directed to FXS stakers (via veFXS or equivalent mechanisms).

Tokenomics

  • Max supply: 100 million FXS
  • Distribution: 60% to community (liquidity programs, yield farming, treasury), 20% to team/founders (vested), 12% to investors (vested), 8% to ecosystem development
  • veFXS: Users can lock FXS for up to 4 years to receive veFXS, which boosts yield across Frax products and grants governance voting power proportional to lock time
  • Burns and buybacks: Protocol revenue generates FXS buybacks from the open market and/or direct distribution to veFXS holders
  • No ChangeNow support: FXS does not currently have ChangeNow swap integration; it’s available on Uniswap, Curve, and major CEX platforms

Use Cases

  • Protocol governance: FXS/veFXS holders vote on Frax’s financial policy, including FRAX collateral ratio targets, AMO strategies, frxETH fee distribution, and Fraxtal chain development
  • Yield/revenue accrual: Protocol revenues are directed to veFXS lockers, making FXS a claim on Frax Finance’s growing multi-product revenue
  • Gauge voting: veFXS holders vote on Fraxswap and Frax liquidity gauge weights, similar to the Curve/Convex power structure
  • Fraxtal participation: FXS is used for staking and delegation on Fraxtal, the Frax L2

History

  • 2020, December — Frax and FXS launch on Ethereum; FRAX is the world’s first fractional-algorithmic stablecoin.
  • 2021 — Frax expands to multiple chains; FRAX reaches $1B+ market cap; FXS reaches an ATH of ~$45.
  • 2022 — Terra/LUNA collapse forces algorithmic stablecoin reexamination. Frax progressively increases FRAX’s collateral ratio toward full backing.
  • 2022 — Frax launches frxETH and sfrxETH, the liquid staking product; FRAX achieves 100% collateralization.
  • 2023 — Frax moves to full collateralization with real-world asset backing; AMO strategies deploy capital into yield-bearing instruments.
  • 2024 — Fraxtal L2 launches on OP Stack; FRAX rebranded toward frxUSD; Frax Finance becomes a multi-product DeFi platform.

Common Misconceptions

  • “FXS is algorithmic stablecoin backing like LUNA.” Frax moved away from the fractional-algorithmic model after Terra’s collapse; FRAX is now fully collateralized. The comparison to LUNA is outdated.
  • “FRAX and FXS are the same token.” FRAX is the stablecoin, designed to stay at $1. FXS is the governance/value-accrual token with a variable market price.
  • “Frax is just a stablecoin project.” Frax has evolved into a multi-product DeFi platform with liquid staking (frxETH), a DEX (Fraxswap), a savings product (sFRAX), and its own L2 blockchain (Fraxtal).

Criticisms

  1. Complexity risk — Frax has undergone multiple design pivots, and the protocol’s expanding surface area (stablecoin, LST, DEX, L2) increases smart contract and governance risk.
  2. Governance token tension — veFXS’s power over gauge weights makes FXS governance partially resemble the Curve Wars dynamic, which can distort incentives.
  3. Competitive stablecoin market — FRAX competes with USDC, USDT, DAI/USDS, LUSD, and newer stablecoins in a crowded market; maintaining relevance requires continued protocol evolution.

Related Terms

  • FRAX — the stablecoin issued by Frax Finance
  • Liquid Staking — the category frxETH/sfrxETH belongs to
  • Stablecoin — foundational context for understanding FRAX’s design
  • Curve DAO Token — closely related governance model (veCRV parallels veFXS)

Sources