Users deposit funds into Frax Finance and receive frxUSD stablecoin (previously FRAX).

Frax Finance is the principal architect of frxUSD - a crypto collateralized stablecoin pegged to the US dollar. Frax Finance was founded by Sam Kazemian, Stephen Moore, Jason Huoan & Travis Moore and launched in 2019.

FRAX (previously FXS) tokenholders own and govern the Frax Finance protocol.

twitter

discord

website

Stablecoin issuers

Frax Stablecoin

# Frax Stablecoin Circulating asset market cap Methodology

## 1. Overview

Asset market cap circulating for Frax stablecoin represents the total USD value of FRAX tokens currently in circulation. Since FRAX is a stablecoin designed to maintain a $1 USD peg, the market cap circulating equals the outstanding supply of tokens. This metric answers how much value in FRAX stablecoins exists in the market and is calculated by tracking all mint and burn events for the FRAX token on Ethereum, then converting the resulting outstanding supply to USD.

## 2. Data sources

The calculation relies on several key data sources:
- **Blockchain events**: Parsed Ethereum `Transfer` events for the FRAX token contract
- **Transaction data**: Ethereum transaction records containing token transfer information
- **External data**: End-of-day token price feeds for USD conversion and token metadata for decimal precision handling
- **Contract data**: FRAX token contract address (`0x853d955acef822db058eb8505911ed77f175b99e`) and special addresses (null address `0x0000000000000000000000000000000000000000` and dead address `0x000000000000000000000000000000000000dead`)

## 3. Step-by-step calculation

### Component A: FRAX token mints tracking
- **Purpose**: Identifies when new FRAX tokens are created and added to circulation
- **Logic**: Filters Ethereum `Transfer` events for the FRAX token contract where the `from_address` is the null address. This indicates tokens being minted from nothing into circulation. Only includes transfers that are not marked as removed to exclude invalid or reverted transactions. Each mint event captures the recipient address, transaction details, and the `amount` of tokens created.
- **Key fields**: `block_timestamp` for timing, `amount` for quantity of tokens minted, `to_address` for recipient, `transaction_hash` and `log_index` for unique identification

### Component B: FRAX token redemptions tracking  
- **Purpose**: Identifies when FRAX tokens are burned or removed from circulation
- **Logic**: Filters Ethereum `Transfer` events for the FRAX token contract where the `to_address` is either the null address or dead address. This indicates tokens being sent to addresses that effectively remove them from circulation. Only includes transfers that are not marked as removed to exclude invalid or reverted transactions. Each redemption event captures the sender address, transaction details, and the `amount` of tokens burned.
- **Key fields**: `block_timestamp` for timing, `amount` for quantity of tokens burned, `from_address` for sender, `transaction_hash` and `log_index` for unique identification

### Component C: Daily supply change calculation
- **Purpose**: Combines mints and burns to calculate net daily changes in FRAX supply
- **Logic**: Unions mint transactions (treated as positive amounts) with redemption transactions (treated as negative amounts). Applies decimal corrections to normalize token amounts based on the FRAX token's decimal precision. Aggregates all transfers by day, summing the amounts to get net daily supply changes. This creates a time series of daily mint/burn activity.
- **Key fields**: `timestamp` aggregated to daily grain, `amount` representing net daily supply change after decimal correction, metadata fields for chain and product identification

### Final aggregation
- **Combining components**: The daily supply changes are processed through a cumulative sum calculation using a window function, ordered by timestamp, to determine the outstanding supply at each date. This running total represents the cumulative effect of all historical mints and burns.
- **Currency conversion**: The outstanding supply values are converted to USD using end-of-day token price feeds through the convert to USD macro. For FRAX stablecoin, this typically maintains close to a 1:1 ratio with USD due to its peg mechanism.
- **Time aggregation**: Missing dates are filled forward using the most recent outstanding supply value to ensure a continuous daily time series with no gaps.
- **Final calculation**: The outstanding supply value is directly used as the asset market cap circulating, since for a stablecoin pegged to $1 USD, the number of tokens outstanding equals the market capitalization. The final metric represents the total USD value of FRAX tokens available in circulation on any given day.

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

Tokenized asset value / AUM (assets under management) — price times circulating supply.

Frax StablecoinFRAX

Circulating asset market cap

Circulating asset market cap

Competitive landscape

Chain breakdown