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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Frax Ether

# Frax Ether Assets staked Methodology

## 1. Overview

Assets staked represents the total value of ETH staked on the Ethereum beacon chain by Frax protocol accounts. This metric tracks the net ETH balance that Frax has deposited for validator staking, calculated as cumulative deposits minus principal withdrawals. The metric answers how much ETH value Frax has committed to Ethereum staking operations, excluding staking rewards to focus on principal amounts only.

## 2. Data sources

- **Ethereum transaction traces**: Records of ETH transfers including value amounts, sender and recipient addresses, transaction status, and block timestamps
- **Ethereum block data**: Block-level withdrawal records containing validator withdrawal amounts, recipient addresses, and withdrawal indices from the beacon chain
- **End-of-day price feeds**: Daily ETH/USD exchange rates for currency conversion
- **Token metadata**: ETH and WETH token information including addresses and decimal precision

## 3. Step-by-step calculation

### Component A: Staking deposits identification
- **Purpose**: Identifies ETH deposits made by Frax protocol to the Ethereum beacon chain
- **Logic**: Filters Ethereum transaction traces to find successful ETH transfers from specific Frax accounts to the beacon chain deposit contract. The source addresses are the Investor Custodian account (`0x5180db0237291a6449dda9ed33ad90a38787621c`) and frxETHMinter account (`0xbafa44efe7901e04e39dad13167d089c559c1138`). The destination is the Ethereum beacon chain deposit contract (`0x00000000219ab540356cbb839cbe05303d7705fa`). Only transactions after the launch date of 2022-05-16 with successful status are included.
- **Key fields**: Transaction `value` amounts are converted from wei to ETH by dividing by 10^18, along with `block_timestamp`, `from_address`, and transaction status

### Component B: Staking withdrawals identification  
- **Purpose**: Captures ETH withdrawals from beacon chain validators back to Frax accounts
- **Logic**: Extracts withdrawal records from Ethereum blocks where the recipient address is the frxETH multisig account (`0x8306300ffd616049fd7e4b0354a64da835c1a81c`). Applies business logic to distinguish between staking rewards and principal withdrawals: amounts less than 32 ETH are treated as rewards and set to zero, while amounts of 32 ETH or more have their principal component isolated by floor-dividing by 32 and multiplying by 32 to capture only full validator stake amounts.
- **Key fields**: Withdrawal `amount` values are converted from gwei to ETH by dividing by 10^9, along with `validator_index`, `withdrawals_root`, and block information

### Component C: Daily flow aggregation
- **Purpose**: Combines deposits and withdrawals into daily net staking flows
- **Logic**: Unions the deposit amounts (as positive values) with withdrawal amounts (as negative values), then aggregates by day using daily timestamp truncation. Groups by all dimension fields including chain, business segment, product version, and token information to create daily summaries of net staking activity.
- **Key fields**: Daily aggregated `amount` representing net ETH flow (deposits minus withdrawals) for each day

### Component D: Gap filling and balance calculation
- **Purpose**: Creates a complete daily time series and calculates running staked balance
- **Logic**: Fills any missing days with zero amounts to ensure continuous daily data, then applies a cumulative sum window function partitioned by chain and token address and ordered by timestamp. This running total represents the cumulative net ETH staked on the beacon chain over time.
- **Key fields**: Cumulative `amount` representing total ETH staked balance at each point in time

### Final aggregation
- **Combining components**: The final metric uses the running balance from the gap-filled daily flows as the base assets staked amount
- **Currency conversion**: Applies end-of-day ETH to USD price conversion using standard token price feeds and decimal correction macros
- **Time aggregation**: Data is aggregated at daily granularity with timestamp truncation to day boundaries
- **Final calculation**: The final assets staked value represents the cumulative ETH balance (in USD) that Frax protocol accounts have staked on the Ethereum beacon chain, calculated as the running sum of daily deposit and withdrawal flows with principal-only withdrawal filtering

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Value of assets staked or restaked through the project.

Frax Ether

Assets staked

Assets staked

Competitive landscape

Chain breakdown