Staked FRAX (sFRAX) is the savings token of Frax Finance, letting holders of the FRAX stablecoin earn a yield benchmarked loosely to the US policy rate and funded by Frax protocol revenue and treasury assets. It can be redeemed for FRAX at any time with no lock-up. sFRAX scores 52/100 (Tier 4) on the RWTS Trust Score, our lowest stablecoin band, because FRAX's hybrid collateralised-and-algorithmic design and the protocol's reliance on its own revenue carry more structural risk than a fully reserved dollar. The yield is modest and varies with Frax policy.
- Issuer / protocol
- Frax Finance
- Backing
- FRAX (hybrid algorithmic + collateralized)
- Redemption / lock-up
- None
- Audit & proof of reserves
- Independently audited
- Availability
- Global
- Chain
- Ethereum
- Tier
- Tier 4 — Synthetic & Structured
- Contract
- 0xA663…7d42
Scored on the published RWTS methodology (v1.1), reviewed quarterly and on material events. Ratings are independent and never pay-influenced.
Calculations are indicative. Actual yields may vary.
Price data from CoinGecko. Not financial advice.
Projections assume constant APY of 0.67%. Actual returns may vary. Not financial advice.
Multi-source yield with structural complexity; lowest in T4.
Methodology v1.0 · independent rating · published rubric · no issuer payments
Staked wrapper around FRAX; FRAX is a hybrid algorithmic/collateralized stablecoin currently ~92%+ collateralized but the algorithmic component remains in the structural design. Closest rubric band for hybrid-mechanism design.
Frax publishes protocol-state dashboard (facts.frax.finance) with full collateralization breakdown; Chainlink price feeds active; on-chain transparency framework.
sFRAX to FRAX is instant via the Frax Savings vault; FRAX to USDC convertible via Curve and other AMMs at par with deep liquidity. Sub-minute end-to-end USDC convertibility. Right 8/8, route 3/7: one route, enforced by contract or regulation rather than goodwill.
Multiple smart contract audits (Trail of Bits, Code4rena competitive audits, others); active bug bounty; protocol security operations matured over multiple years.
Frax Finance Inc. registered (Cayman Islands); Frax DAO governance; published terms and entity structure.
sFRAX launched September 2023 (~20 months as of May 2026). No material incidents specific to sFRAX. Note: parent FRAX briefly traded slightly below peg during March 2023 USDC depeg event (parent FRAX was 92% USDC-backed at the time; recovered fully when USDC repegged); sFRAX itself launched after this event.
HYBRID_MECHANISMFRAX maintains a hybrid algorithmic/collateralized design. Algorithmic component is small (~8%) but structurally present. Yield rate (Frax Savings Rate) is highly variable based on AMO performance; data.ts notes recent rate at 1.25% vs historical 5-10%.
PARENT_FRAX_HISTORICAL_DEPEG_USDC_2023Parent FRAX briefly traded below peg during March 2023 USDC depeg (FRAX was ~92% USDC-collateralised). Full recovery within hours when USDC repegged. sFRAX launched September 2023 after this event.
Caveats document operational realities that don't change the dimensional score but shape practical use.
Beyond sFRAX's own score, two structural questions matter: what is it built on, and what has broken before in this part of the market. A high score in isolation can still carry hidden, shared exposure.
What this and similar assets are built on, and where contagion could spread.
The depegs, defaults, and exploits that inform the Track Record dimension.
Liquidity read: TVL of $65.19M indicates developing on-chain liquidity. Lock-up: None.
Is sFRAX safe?
sFRAX (Staked FRAX) scores 52/100 on the independent RWTS Trust Score, which places it in Synthetic & Structured (Tier 4). Tier 4 is the highest-risk tier: synthetic or structured backing where the yield comes with genuine structural risk, not a hard claim. Backing: FRAX (hybrid algorithmic + collateralized). It is independently audited. The score reflects backing, verification, redeemability, audit, regulatory standing, and track record, not headline yield. We rate. You decide.
Exit routes
11/15 · right 8/8 · routes 3/7If the issuer stopped cooperating tomorrow, could you get out?
One route, and it does not depend on the issuer
- independent
ERC-4626 redeem to FRAX
Unconditional and permissionless.
Route 3: one route, contract-enforced. No secondary venue could be verified above the $10,000 capacity floor, so none is counted. Right 8 all the same, because the contract redemption is unconditional.
This is the redeemability component of the Trust Score above, which stands at 52/100 (C-). Until 1 September 2026 redeemability was a single figure measuring the right to redeem while ignoring how many routes existed to exercise it. Splitting it moved this asset’s score. How the score works
Assessed 2026-09-01. Route independence asks how many ways out the issuer cannot close, not how much the asset trades.
Compare sFRAX
Head to head on the Trust Score with similar assets.