Frax Staked frxUSD (SFRXUSD): What It Is, Uses and Risks

sfrxUSD is the staked form of frxUSD, a stablecoin in the Frax ecosystem. The project describes it as a yield-bearing stablecoin built to the ERC-4626 vault standard, a common Ethereum format for tokenized vaults. Holders deposit frxUSD and receive sfrxUSD. The token is not rebasing, so the number of tokens in a wallet stays the same, while the amount of frxUSD each token can be redeemed for rises as yield builds up. According to the project, redemption for the underlying frxUSD carries no unstaking fee and no price impact. Because sfrxUSD is a wrapper, its value depends on frxUSD keeping its target value and on the yield strategies behind it performing as described.

The project does not list a governance vote, payment use or fee role for sfrxUSD itself. Its stated purpose is to pay yield on frxUSD holdings. The project says the yield comes from a benchmark-rate approach that switches between three governance-approved strategies: a carry-trade strategy, algorithmic market operations (AMOs), and the rate tied to interest on reserve balances and T-bills (IORB). The description says this design aims to keep the yield competitive onchain, but that is a stated goal, not a guarantee. Some people hold tokens like this as a dollar-linked asset that earns yield. Others may use them in other dApps that accept them, but each protocol sets its own terms, so check those before using the token there.

As of 2026-11-05, the data shows a price of about $1.22 and a market capitalization of about $35.1 million, which ranks it 590th by market cap. Circulating supply is about 28.76 million tokens, very close to the total supply of about 28.76 million, and no maximum supply is listed. Trading volume over 24 hours was about $64,549. Over the past seven days the price moved about 0.1 percent, and over the past year about 4.6 percent. The all-time high of about $1.32 was recorded on 2026-10-30, and the all-time low of about $1.056 on 2025-02-28. These figures change constantly and are a snapshot, not a forecast.

The data lists sfrxUSD as issued on Ethereum, Katana, Arbitrum, Mode, X Layer, Sei, Fraxtal and Sonic. It is not the native token of any of these chains. The project does not break out supply or liquidity for each chain, so the market figures above describe the token overall. Each chain version is a separate deployment, and moving tokens between chains may require a bridge, which adds its own technical risk. The token is also tagged in several categories, including liquid staking tokens, yield-bearing stablecoins and fiat-backed stablecoins, which reflects how it is described rather than a guarantee of how it behaves.

The main risks are a peg risk, where frxUSD or sfrxUSD trades away from its target value, and strategy risk, since the yield depends on carry-trade positions, AMO operations and changes in the reserve and T-bill rates. Smart contract risk applies on every chain where the token is deployed, and bridge risk applies when moving between them. Liquidity may be thin relative to the market cap, given the daily volume reported. To store the token, use a self-custody wallet that supports the chain you choose and confirm the token contract address for that chain before sending funds. Never share a seed phrase or private key, and consider a small test transfer before moving a larger amount. This is general information, not financial advice.