FrxETH breaks 50k!!

A notable milestone for the fastest growing Ethereum Liquid Staking Derivative

Samuel McCulloch
Samuel McCulloch
Jan 10, 2023
FrxETH breaks 50k!!

In just 85 days, FrxETH has gone from 0 to 50k in supply. This is an important milestone for Frax and highlights the success of its design.

Growth of FrxETH since launch

FrxETH was launched on October 16, 2022 and has averaged 500 ETH daily deposits in its short time span. FrxETH and its sister asset sFrxETH are the two token Ethereum staking derivative deployed and operated by the Frax protocol.

What is FrxETH? Frax's ETH Liquid Staking Derivative Explained
What is FrxETH? tldr;: FrxETH is an ETH based stablecoin with a two token design, frxETH and sfrxETH. frxETH is a stablecoin that is loosely pegged to ETH, but it receives no staking yields. FrxETH can be staked to receive sFrxETH, which receives the yield earned from staking. Token holders must choose where to get their yield…. Frax or Curve LP. Its a F…

Flywheel has covered FrxETH extensively during this period, with the highlight being the interview with Jack Corddy, the developer who created the contracts. Over the course of nearly 2 hours, Jack expertly explained the mechanics of FrxETH and sFRXETH.

Frax’s incentive system and FrxETH’s two token design are the reasons for its rapid growth. Each week Frax funds bribes the FrxETH/ETH Curve LP pool. As FrxETH is a non-yielding token, investors must make a decision between staking for native yield and Curve LP incentives.  This has led sFrxETH to have the highest yield for any LSD, breaking double digits for the first two months of its existence.

Screenshot from Frax Facts on the FrxETH APR

Even now with 50k supply, sFrxETH is yielding 7.70%, almost double its competitors. At its highs, sFRXETH yielded 10.95% and the FrxETH/ETH Curve LP was at 16.74%. In total FrxETH has earned 244 ETH in staking rewards, split between 1285 active validators.

Growth of FrxETH compared to other LSD’s

As of writing there are 822 unique wallets holding FrxETH and sFrxETH.

Notable wallets date of first acquiring frxETH:

0xD07993c6cb9692a71522Baf970A31069034dF2B0 - 2022/11/28

0x9026A229b535ecF0162Dfe48fDeb3c75f7b2A7AE (czsamsunsb.eth) - 2022/11/16

0x581cf4642283edA85a64bB45cd226854415AB830 - 2022/12/02

0xaac0aa431c237c2c0b5f041c8e59b3f1a43ac78f (ct2p.eth)  - 2023/01/04

Frax Facts FrxETH Dashboard

struct3r’s Dune FrxETH Dashboard

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