Frax Lend is Frax Finance’s isolated, permissionless FRAX stablecoin lending protocol — where any user can create a lending pair (collateral asset → borrow FRAX) with custom parameters, each pair completely isolated from others (a bad debt event in the CRV/FRAX pair does not affect the WBTC/FRAX pair) — using a Time-Weighted Variable Rate (TWVR) interest rate model that rapidly increases borrow rates when utilization exceeds the kink point (to prevent bank runs), and enables Frax to generate protocol revenue by deploying FRAX as lent capital while FXS (Frax Share) captures that protocol revenue rather than requiring a separate lending token.
| Stat | Value |
|---|---|
| Ticker | FXS |
| Price | $0.44 |
| Market Cap | $41.56M |
| 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 |
How It Works
- Isolated pair lending — Each Frax Lend pair (e.g., sFRAX/FRAX, CRV/FRAX, wstETH/FRAX) is a completely independent smart contract. Collateral deposited into one pair cannot be liquidated to cover losses in another pair. This is identical to Euler’s isolation model or Morpho Blue’s market model.
- Borrow FRAX — Users deposit collateral into a Frax Lend pair and borrow FRAX at the current variable borrow rate. Frax’s FRAX stablecoin is then borrowed from Frax Finance’s treasury or AMO (Algorithmic Market Operations) supply.
- Time-Weighted Variable Rate — Frax Lend’s interest rate model weights recent utilization more heavily than older utilization, causing rates to spike faster when sudden deposit withdrawals or large borrows push utilization high. This protects against liquidity crises more aggressively than Aave/Compound’s standard kinked rate model.
- No separate lending token — Unlike Aave (AAVE governance) or Compound (COMP governance), Frax Lend uses FXS (Frax Share) for all protocol governance (including lending parameters). Lenders don’t receive a separate LP token — they hold FRAX as the asset and Frax Lend’s revenue accrues to the Frax protocol treasury, benefiting FXS holders via buybacks.
- AMO integration — Frax’s AMO (Algorithmic Market Operations) can deploy FRAX directly into Frax Lend as lendable capital, allowing the protocol to directly control lending supply.
Tokenomics
| Parameter | Value |
|---|---|
| Protocol token | FXS (Frax Share — governs all Frax Finance products) |
| Lending fee | Interest rates set by TWVR model; protocol retains a portion |
| Frax Lend launch | October 2022 (mainnet) |
| Isolation | Full pair isolation (each market independent) |
Use Cases
- Leverage against DeFi collateral — Borrow FRAX against CRV, CVX, FXS, or other DeFi tokens.
- Stablecoin liquidity — Borrow FRAX at predictable isolated-market rates.
- Permissionless market creation — Deploy new FRAX lending pairs against long-tail assets without governance approval.
History
- 2022-10 — Frax Lend launches on Ethereum mainnet as part of the Frax Finance ecosystem expansion under the “Fraxlend” brand. Initial pairs include sFRAX/FRAX, FXS/FRAX, and major DeFi token pairs.
- 2023 — Frax Lend grows as a FRAX borrowing venue, complementing Frax Finance’s main stablecoin and frxETH/sfrxETH liquid staking products. The isolated pair model attracts projects seeking to create FRAX leverage markets for their tokens.
- 2023-Q4 — Curve Finance (CRV) experiences a significant borrow demand on Frax Lend as CRV holders seek to borrow stablecoins against their tokens following Curve’s August 2023 liquidity crisis. Frax Lend’s TWVR model’s rapid rate response during this period is studied as a case example of effective DeFi rate management.
- 2024 — Frax Lend continues as an active component of the Frax Finance and Frax ecosystem. The V3 transition of FRAX (to 100% exogenous collateral) changes Frax Lend’s FRAX supply dynamics.
Last updated: 2026-04