FPI, issued by the Frax Protocol smart contracts under the governance of veFXS tokenholders, is a tokenized yield-bearing staking instrument whose returns derive from Ethereum validator rewards accrued through the protocol's frxETH and sfrxETH components. [S1][S2]

The instrument exposes holders to the Frax Ether liquid-staking system. frxETH is minted 1:1 against ETH deposited to the frxETHMinter and earns no yield, functioning as a wrapped-ETH replacement. [S1][S3] Yield accrues only to sfrxETH, an autocompounding ERC-4626 vault whose frxETH-per-sfrxETH exchange rate rises as validator rewards accumulate. [S3][S4] Validator income is split 90% to sfrxETH stakers, 8% protocol fee, and 2% to an insurance fund. [S1][S4]

No corporate entity issues the tokens; they are minted and managed by Frax Protocol smart contracts under a fully onchain Compound/OpenZeppelin Governor system controlling Gnosis Safes, with veFXS tokenholders holding final authority. [S3][S2] The only surfaced legal entity, Frax Finance, operates the governance forum, whose Terms of Service select Cayman Islands law and govern forum use rather than the tokens. [S5] frxETH represents a token loosely pegged to ETH within a 0.99 to 1.01 band; sfrxETH represents a proportional claim on the vault frxETH balance. [S3][S4] Minting is permissionless onchain with no minimum deposit, and withdrawals are available at any time, backed by onchain staked ETH. [S1][S6]

frxETH implements the ERC-2612 permit standard; sfrxETH is an ERC-4626-compliant vault that also supports ERC-2612 permits. [S6] Native issuance is on Ethereum mainnet and Fraxtal, with bridged availability across Arbitrum, Base, Blast, BSC, Fantom, Metis, Mode, Moonbeam, Optimism, Polygon, Sei, and X-Layer via LayerZero. [S7] Minting deposits ETH to the frxETHMinter, which stakes 32 ETH per validator. [S1][S6]

<Sources
  retrievedAt="2026-06-23"
  items={[
    { id: "S1", url: "https://docs.frax.finance/frax-ether/overview" },
    { id: "S2", url: "https://docs.frax.finance/governance/frax-governance-overview" },
    { id: "S3", url: "https://docs.frax.finance/frax-ether/frxeth-and-sfrxeth" },
    { id: "S4", url: "https://docs.frax.finance/" },
    { id: "S5", url: "https://gov.frax.finance/tos" },
    { id: "S6", url: "https://docs.frax.finance/frax-ether/technical-specifications" },
    { id: "S7", url: "https://docs.frax.finance/frax-ether/frxeth-and-sfrxeth-token-addresses" },
  ]}
/>


Tokenized funds

Stakers deposit funds into Frax and receive a return on investment in the form of staking rewards (supply-side fees).


Frax Ether is a liquid staking derivative product created by the Frax Finance protocol. Frax Finance was founded by Sam Kazemian, Stephen Moore, Jason Huoan & Travis Moore and launched in 2019.


FRAX tokenholders own and govern the Frax Finance protocol, including the Frax Ether business line. They currently take a cut of the total staking rewards earned by the protocol (revenue). Frax’s investors include Crypto.com Capital & Ascensive Assets.


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Liquid staking

Frax Ether

Frax Price Index (FPI) is a tokenized fund share issued by Frax Ether.

The fund is open-ended and invests in U.S. multi-asset.

Retail investors, professional investors, accredited investors, qualified investors, qualified purchasers, and institutions can mint and redeem directly with Frax Ether in FRAX, and holders have a right to redeem at net asset value with instant settlement.

FPI has been issued on public blockchains since March 2022 and is native to Ethereum, Arbitrum One, BNB Chain, and Fraxtal.

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