Frequently asked questions
The questions below are the ones people actually ask about Frax, with direct answers. Where something is changing or genuinely numeric, the answer says so and points you to a live source rather than guessing.
Is FRAX still an algorithmic stablecoin?
Not in the way it started. Frax launched in 2020 as the first fractional-algorithmic stablecoin, mixing collateral with an algorithmic component. In 2023 the community voted to move FRAX to full collateral backing, so the algorithmic portion was retired. Treat the exact backing as a live figure and confirm it in the official documentation.
What is frxUSD and how is it different from FRAX?
frxUSD is the brand for the flagship Frax stablecoin under the 2025 North Star rebrand, designed for direct fiat redemption through regulated partners. The ticker FRAX, meanwhile, is being reassigned to the renamed governance and gas token. Because naming changed during the transition, always check the current contract and docs before acting.
Did FXS become FRAX?
That is the plan approved through the North Star proposal: FXS is renamed to FRAX and becomes the gas and staking token of the Fraxtal network, with veFXS becoming veFRAX. Rollout happens in stages, so the live state may differ from any single article. Verify on the governance forum and documentation.
How does frxETH earn yield?
Holding frxETH by itself does not earn staking rewards. You stake it by converting frxETH into sfrxETH, an ERC-4626 vault. As Frax's validators earn rewards, the vault's frxETH grows, so each sfrxETH redeems for more frxETH over time. Converting back realizes the accrued yield.
Can I lose money using Frax?
Yes. Borrowing on Fraxlend can lead to liquidation if your collateral falls in value; stablecoins can trade away from their peg; and every smart contract carries risk. Read the risks and liquidations page, size positions conservatively, and never deposit money you cannot afford to lose.
Is this the official Frax website?
This is an information hub for the Frax project published on an authorized alternative domain for regions where the main domain is unreachable. For transactions and the latest parameters, rely on the official documentation, GitHub and governance channels linked throughout this site.
How do I avoid Frax phishing scams?
Bookmark official links rather than searching each time, double-check every domain character by character, never enter or share your seed phrase, and be skeptical of any site that rushes you to connect a wallet. This site never asks you to connect a wallet because it is purely informational.
Still curious? The overview and the glossary cover the rest, and the security page goes deeper on staying safe.