Frax USD

Frax USD (frxUSD) is a fiat-redeemable, fully-collateralized stablecoin issued by the Frax Finance Protocol, designed to maintain a one-to-one value with the US dollar. It is intended for people who want to move value across decentralized finance applications or hold a dollar-denominated asset on-chain without exposure to price swings. The problem it addresses is the need for a stable, dollar-pegged medium of exchange that can work across multiple blockchain networks simultaneously.

frxUSD operates through a hybrid model in which governance-approved custodians, called enshrined custodians, mint new frxUSD when users deposit cash-equivalent reserves and redeem it when users want those reserves back. On-chain mechanisms developed by Frax Finance are layered on top to maintain stability and allow the token to function across Ethereum, Solana, Avalanche, BNB Chain, Polygon, and Arbitrum. The token itself has no mining or staking consensus of its own; it relies on the underlying blockchains it is deployed on for settlement.

The data stored for frxUSD does not include a fee stream, revenue figures, or protocol earnings, so fee-based measures that this site might calculate for other assets are not applicable here. The economic model is tied to reserve management by approved custodians rather than transaction fees collected by a protocol treasury. What is observable is that the stablecoin circulating supply stood at 113,256,536 tokens at the recorded point in time, and that supply grew by approximately 9.1 percent over the trailing 30 days, reflecting new minting activity during that period.