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.

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Frax Stablecoin

# Frax Stablecoin Total value locked Methodology

## 1. Overview

The FraxStablecoin TVL (Total Value Locked) metric represents the total value of FRAX stablecoins in circulation. This metric is calculated by tracking the outstanding supply of FRAX tokens and converting the supply to USD value. The calculation follows the principle that for stablecoin protocols, TVL equals the total circulating supply since each token represents locked value in the protocol's reserves.

## 2. Data sources

The calculation relies on the following raw data sources:

- **Blockchain events**: Parsed Ethereum `Transfer` events for the FRAX token contract (`0x853d955acef822db058eb8505911ed77f175b99e`)
- **Token metadata**: Token decimal information for proper amount normalization
- **External data**: End-of-day price feeds for USD conversion of outstanding supply values

## 3. Step-by-step calculation

### Component A: FRAX token mints identification
- **Purpose**: Identifies when new FRAX tokens are minted into circulation
- **Logic**: Filters Ethereum `Transfer` events where the `from_address` equals the null address (`0x0000000000000000000000000000000000000000`). These transfers represent tokens being minted from nothing into circulation. Each mint event captures the `block_timestamp`, `transaction_hash`, `log_index`, recipient address, and `amount` of tokens minted.
- **Key fields**: `block_timestamp`, `amount`, `to_address`, `token_address`

### Component B: FRAX token burns identification  
- **Purpose**: Identifies when FRAX tokens are burned and removed from circulation
- **Logic**: Filters Ethereum `Transfer` events where the `to_address` equals either the null address (`0x0000000000000000000000000000000000000000`) or the dead address (`0x000000000000000000000000000000000000dead`). These transfers represent tokens being permanently removed from circulation. Each burn event captures the same fields as mints but with tokens being sent to addresses that effectively destroy them.
- **Key fields**: `block_timestamp`, `amount`, `from_address`, `token_address`

### Component C: Outstanding supply calculation
- **Purpose**: Calculates the net outstanding supply of FRAX tokens over time by combining mints and burns
- **Logic**: Unions the mint and burn events, treating mints as positive amounts and burns as negative amounts. Applies decimal correction using token metadata to normalize amounts to standard units. Aggregates events daily by truncating timestamps to day boundaries. Calculates cumulative outstanding supply using a running sum partitioned by chain, version, and token address, ordered by timestamp. Forward fills missing days to ensure a complete time series without gaps.
- **Key fields**: `timestamp`, `outstanding_supply`, `token_symbol`, `chain`

### Component D: USD conversion
- **Purpose**: Converts outstanding supply amounts from token units to USD value
- **Logic**: Takes the outstanding supply values and converts them to USD using end-of-day price feeds. Since FRAX is a stablecoin designed to maintain a $1 peg, this conversion typically results in a 1:1 ratio, but market pricing is still applied for accuracy. The conversion uses the latest available price for each day.
- **Key fields**: `outstanding_supply` (converted to USD), `timestamp`

### Final aggregation
- **Combining components**: The outstanding supply values (already in USD) are summed across all products and chains to get total protocol TVL
- **Currency conversion**: Outstanding supply is converted to USD using end-of-day price feeds before final aggregation
- **Time aggregation**: Daily boundary logic uses timestamp truncation to day level, with forward filling to ensure no gaps in the time series
- **Final calculation**: The TVL equals the sum of outstanding supply values across all FRAX tokens, representing the total value of stablecoins in circulation backed by the protocol's reserves

*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 StablecoinFRAX

Total value locked

Total value locked

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