Frax USD (FRXUSD)

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Historical price evolution of Frax USD

Daily historical data. Updated automatically.

Frax USD has its roots in May 2019, when Sam Kazemian, Travis Moore and Jason Huan announced the project under the name Decentral Bank. The foundational objective was to create the world's first fractional-algorithmic stablecoin, capable of dynamically adjusting its collateralisation level according to market confidence. This innovative concept sought to solve the stablecoin trilemma by combining algorithmic elements with variable collateral backing.

On 20th December 2020, Frax Finance officially launched on Ethereum mainnet at 00:00 UTC. Adoption was immediate and massive: in less than one hour it accumulated 43 million dollars in TVL, exceeding 300 million in a few days. On 13th January 2021, 100 million FRAX minted was reached with a collateral ratio of 85%, and on 17th February FRAX became the first algorithmic stablecoin listed on Binance, marking a milestone in institutional recognition of the project.

During 2022, the protocol experienced significant technical evolution with the launch of Frax v2 in January, which introduced AMOs (Algorithmic Market Operations), autonomous monetary policy modules that deploy protocol liquidity in Curve and other DeFi protocols. In June, Fraxswap was launched, a native DEX with TWAMM orders. That same year, Frax abandoned its original fractional-algorithmic model and transitioned to 100% collateralisation. Concurrently, Kazemian and Balaji Srinivasan introduced the flatcoin concept with the launch of Frax Price Index (FPI), the first stablecoin linked to the Consumer Price Index.

In 2023, Forbes included Kazemian in its 30 Under 30 list in finance, highlighting the 86 million dollars in revenue generated by Frax in its first complete year of operation with only 8 employees. In February 2024, the ecosystem expanded with the launch of Fraxtal, a layer 2 blockchain based on OP-Stack with frxETH as native gas token. On 2nd January 2025, Frax Finance launched frxUSD as a rebrand of its main stablecoin. The FIP-418 proposal, approved unanimously, enabled BlackRock's BUIDL fund as primary custodial asset, offering direct conversion to fiat via Paxos and its yield-bearing counterpart sfrxUSD.

The most recent developments include the North Star Hardfork executed in May 2025, where FXS was renamed FRAX becoming the native gas token of Fraxtal, whilst the original FRAX was renamed Legacy Frax Dollar. The protocol introduced a decreasing emission plan and the Flox Capacitor Boost incentive system. On 4th June 2025, Vice President JD Vance publicly confirmed that frxUSD complies with the requirements of stablecoin bills in process in the US Congress. On 9th July 2025, an exploit in GMX V1 drained 10.49 million FRAX, although the attacker returned 100% of the funds within 48 hours accepting a 10% reward, with no vulnerabilities detected in the Frax protocol itself. Currently, Frax has submitted an application to access a Federal Reserve Master Account, which would allow frxUSD to operate directly within the US regulated banking system, whilst developing frxBTC, a wrapped Bitcoin asset integrated into the ecosystem with mint/redeem mechanisms and Merkle proofs for on-chain verification.

frxUSD functions as a fully collateralised stablecoin that maintains its 1:1 peg with the US dollar through 100% backing in real-world assets. The central mechanism is based on BlackRock's BUIDL fund, tokenised by Securitize, which invests the protocol's resources in low-risk instruments such as US Treasury bills, cash and repurchase agreements. Users can mint frxUSD by depositing protocol-approved assets (USDC, USDe, sDAI and other tokenised real assets) and subsequently redeem them directly to fiat currency through integration with Paxos, eliminating the need for intermediate conversions.

The protocol deploys a dual system where frxUSD acts as the base stablecoin, whilst sfrxUSD represents the yield-generating version. Users can deposit frxUSD to receive sfrxUSD and capture the yield produced by the underlying collateral assets. To optimise yield generation and maintain price stability, Frax utilises modules called AMOs (Algorithmic Market Operations) that operate autonomously, deploying collateral liquidity in DeFi protocols such as Curve to generate additional income and reinforce the dollar peg mechanism.

The protocol's governance resides with FRAX token holders, who can participate in decision-making by locking their tokens to obtain veFRAX and vote on improvement proposals known as FIPs. The ecosystem operates in a multichain manner, functioning on Ethereum as the main network, Fraxtal (its own layer 2 chain), and multiple EVM-compatible networks including Arbitrum, Optimism and Polygon, allowing users to interact with the protocol from different blockchains according to their cost and transaction speed preferences.

Data verified against external sources. Some values may have changed since the last update.