FrxETH breaks 50k!!

A notable milestone for the fastest growing Ethereum Liquid Staking Derivative

Jan 10, 2023

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.

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.

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.