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 Ether Total value locked Methodology

## 1. Overview

Frax TVL represents the total value locked in Frax's liquid staking protocol, calculated as the USD value of ETH that Frax has staked on the Ethereum beacon chain. This metric answers how much value users have deposited with Frax for liquid staking services. The calculation tracks net ETH flows between Frax-controlled accounts and the Ethereum staking infrastructure, maintaining a running balance of assets under management.

## 2. Data sources

The calculation relies on several key data sources:
- **Ethereum transaction traces**: Complete transaction execution data capturing ETH transfers from Frax accounts to the Ethereum staking deposit contract
- **Ethereum block withdrawal records**: Beacon chain validator withdrawal events embedded in Ethereum block data, including withdrawal amounts and recipient addresses  
- **End-of-day token price feeds**: Daily ETH/USD exchange rates for currency conversion
- **Hardcoded account mappings**: Predefined lists of Frax-controlled Ethereum addresses used for staking operations, including deposit accounts (`0x5180db0237291a6449dda9ed33ad90a38787621c` as 'Investor Custodian' and `0xbafa44efe7901e04e39dad13167d089c559c1138` as 'frxETHMinter') and withdrawal accounts (`0x8306300ffd616049fd7e4b0354a64da835c1a81c` as 'frxETH multisig')

## 3. Step-by-step calculation

### Component A: Staking deposit tracking
- **Purpose**: Captures ETH deposits from Frax accounts to the Ethereum beacon chain
- **Logic**: Filters Ethereum transaction traces to find ETH transfers where the sender is a known Frax staking account and the recipient is the Ethereum staking deposit contract (`0x00000000219ab540356cbb839cbe05303d7705fa`). Only includes successful transactions after the protocol launch date of May 16, 2022. Converts transaction values from wei to ETH by dividing by 10^18
- **Key fields**: `block_timestamp` for timing, `from_address` to identify Frax accounts, `to_address` to verify staking contract, `value` containing the ETH amount, and `status` to ensure successful transactions

### Component B: Staking withdrawal tracking  
- **Purpose**: Captures validator withdrawals from the beacon chain back to Frax accounts
- **Logic**: Extracts withdrawal events from Ethereum block data where the withdrawal recipient address matches known Frax withdrawal accounts. Applies filtering logic to distinguish between full validator withdrawals and rewards: amounts less than 32 ETH are treated as rewards and set to 0, while amounts 32 ETH or greater are floored to the nearest 32 ETH multiple to isolate the principal stake amount. Converts withdrawal amounts from gwei to ETH by dividing by 10^9
- **Key fields**: `timestamp` from block data, `address` as withdrawal recipient, `amount` for withdrawal value, and `validator_index` to track specific validators

### Component C: Net daily staking flows
- **Purpose**: Combines deposits and withdrawals to calculate daily net changes in beacon chain balance
- **Logic**: Unions deposit amounts (positive values) with withdrawal amounts (negative values), truncating timestamps to daily boundaries. Aggregates total flows by day for each token and chain combination. Applies gap filling to ensure continuous daily time series, inserting zero values for days with no staking activity
- **Key fields**: `timestamp` truncated to day level, `amount` representing net daily flow (positive for deposits, negative for withdrawals), and dimensional fields for grouping

### Final aggregation
- **Combining components**: The daily net flows are processed through a cumulative sum calculation, creating a running total that represents the current beacon chain balance at each point in time
- **Currency conversion**: ETH amounts are converted to USD using end-of-day price feeds, with the conversion applied after calculating the cumulative ETH balance
- **Time aggregation**: Data is maintained at daily granularity throughout the calculation, with the final metric representing the cumulative USD value of staked assets as of each day
- **Final calculation**: The TVL metric equals the USD value of the cumulative net ETH balance that Frax maintains on the Ethereum beacon chain, representing the total value of user deposits in the liquid staking protocol

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

Total value locked (TVL)

Total value locked (TVL) — value deposited into the project's applications.

Frax Ether

Total value locked

Total value locked

Competitive landscape

Chain breakdown