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.


github

twitter

discord

etherscan

website

Liquid staking

Frax Ether

# Frax Ether Supply-side fees Methodology

## 1. Overview

Supply-side fees for Frax represent the rewards distributed to users who provide liquidity through the Frax liquid staking protocol, specifically sfrxETH stakers. This metric captures the portion of protocol fees that flow back to supply-side participants as incentives for providing staking services. The calculation aggregates daily reward distributions from the sfrxETH liquid staking contract and converts them to USD values.

## 2. Data sources

- **Ethereum blockchain events**: Parsed `NewRewardsCycle` events from the sfrxETH liquid staking contract on Ethereum (address `0x5e8422345238f34275888049021821e8e08caa1f`)
- **End-of-day price feeds**: Token price data for USD conversion of reward amounts
- **Token metadata**: Decimal precision information for proper amount calculation
- **Contract metadata**: WETH contract address (`0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2`) used for token standardization

## 3. Step-by-step calculation

### Component A: Reward event extraction
- **Purpose**: Captures all reward distributions from the Frax liquid staking protocol
- **Logic**: Extracts `NewRewardsCycle` events from the sfrxETH contract on Ethereum blockchain. These events are emitted when rewards are distributed to sfrxETH stakers. Only non-removed events are included to filter out any reverted transactions. Each event contains the reward amount distributed to supply-side participants.
- **Key fields**: `rewardAmount` field contains the amount of rewards distributed, `block_timestamp` for timing, `transaction_hash` and `log_index` for unique identification

### Component B: Data standardization and classification
- **Purpose**: Standardizes the raw event data into Token Terminal's metric format
- **Logic**: Each reward event is classified as liquid staking supply-side fees with business line categorization. The token address is standardized to WETH for consistency across Token Terminal metrics. Timestamps are truncated to daily boundaries for aggregation. The account name is set to "frxETH" to identify the specific Frax product generating these fees.
- **Key fields**: `timestamp` truncated to day, `token_address` standardized to WETH address, `amount` as the fees earned by supply-side participants, `business_line` set to "Liquid staking"

### Final aggregation
- **Combining components**: Raw reward amounts from blockchain events are processed through Token Terminal's standard metric pipeline
- **Currency conversion**: Reward amounts are converted to USD using end-of-day price feeds, with proper decimal correction applied based on token metadata
- **Time aggregation**: Daily boundaries are established by truncating event timestamps to the day level, ensuring all rewards within a 24-hour period are grouped together
- **Final calculation**: The final supply-side fees value represents the USD equivalent of all sfrxETH rewards distributed on each day, with missing days filled with zero values to maintain complete time series data. Chain availability filters ensure data consistency across Token Terminal's supported blockchain networks.

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

Portion of fees distributed to service providers or supply-side participants.

Frax Ether

Supply-side fees

Supply-side fees

Competitive landscape

Chain breakdown