Frax Ether FRXETH Price

What is Frax Ether (FRXETH)?

Frax Ether (frxETH) is a cutting-edge liquid ETH staking derivative, integral to the Frax Finance ecosystem, which was launched in 2022. It's designed to reshape the way users earn interest on their Ethereum (ETH) holdings. By combining the stability of a traditional stablecoin with the innovative staking mechanics of the DeFi space, frxETH offers a unique, simplified, and DeFi-native approach to maximizing Ethereum staking yields.

At the heart of the Frax Ether system are two primary components: Frax Ether (frxETH) and Staked Frax Ether (sfrxETH), alongside the Frax ETH Minter. frxETH operates as a stablecoin, maintaining a loose peg to ETH, thus ensuring a balance between stability and market responsiveness. Each frxETH represents an equivalent value of ETH, making it a reliable store of value within the ecosystem. On the other hand, sfrxETH is an innovative take on frxETH, designed to accrue staking yield. It functions as an ERC-4626 vault, capturing the profits from Frax Ether validators and distributing them to sfrxETH holders. This mechanism ensures that sfrxETH's value grows over time, providing users with an attractive yield on their staked assets.

The Frax ETH Minter is another crucial component, enabling the seamless exchange of ETH for frxETH. This process not only brings ETH into the Frax ecosystem but also supports the creation and operation of new validator nodes. As a result, users can participate directly in the Ethereum staking process, earning yields while contributing to the network's security and efficiency. Frax Ether's approach thus offers a convenient, secure, and accessible way for users to engage with Ethereum staking, maintaining liquidity and composability in the dynamic DeFi landscape.

What is unique about Frax Ether (FRXETH)?

Frax Ether stands out due to its dual functionality. It serves both as a stablecoin, loosely pegged to ETH, and as a liquid staking derivative within the Frax Finance ecosystem. This design allows users to benefit from both stablecoin characteristics and staking yields, making it a unique offering in the DeFi space.

Who are the founders of Frax Ether (FRXETH)?

Frax Ether (FRXETH) is a part of the Frax Finance ecosystem. Sam Kazemian is a co-founder of Frax Finance, which implies his involvement in the creation of Frax Ether.

Who are the backers/investors of Frax Ether (FRXETH)?

Its unique decentralized structure relies on different entities within the crypto ecosystem for its success and stability. frxETH holders, stakers and Frax Finance core contributors has many benefit for Frax Ether support.

Where can I buy Frax Ether (FRXETH)?

You can buy Frax Ether (FRXETH) on Uniswap V3 (Ethereum), Balancer V2, Pancakeswap V3 (Ethereum), Velodrome Finance v2Curve (Ethereum) cryptocurrency exchanges.