{"id":"frax-ether-frxeth-and-sfrxeth","title":"Staked Frax Ether (sfrxETH)","content":"**Staked Frax Ether (sfrxETH)** is a [liquid staking](https://iq.wiki/wiki/liquid-staking)[ derivative](https://iq.wiki/wiki/derivative) [stablecoin](https://iq.wiki/wiki/stablecoin) by [Frax Finance](https://iq.wiki/wiki/frax-finance). sfrxETH is the staked version of [frxETH](https://iq.wiki/wiki/frxeth-frax-ether) designed to accrue the staking yield of the Frax ETH [validators](https://iq.wiki/wiki/validator). The exchange rate of [frxETH](https://iq.wiki/wiki/frxeth-frax-ether) per sfrxETH increases over time as [staking](https://iq.wiki/wiki/staking) rewards accrue to the vault.\n\n![flowchart.jpg](https://ipfs.everipedia.org/ipfs/QmX76ZzRLq8wMtXgit6pwgv1B7PCRyVuDn7mVXjPuL3Rxq)\n\n## Overview\n\nThe Frax Ether system comprises three primary components, [Frax Ether (frxETH)](https://iq.wiki/wiki/frxeth-frax-ether), Staked Frax Ether (sfrxETH), and the Frax ETH Minter:\n\n### sfrxETH\n\nsfrxETH is the version of [frxETH](https://iq.wiki/wiki/frxeth-frax-ether) that accrues staking yield. All profit generated from Frax Ether validators is distributed to sfrxETH holders. By exchanging [frxETH](https://iq.wiki/wiki/frxeth-frax-ether) for sfrxETH, one becomes eligible for staking yield, which is redeemed upon converting sfrxETH back to [frxETH](https://iq.wiki/wiki/frxeth-frax-ether). It is an [ERC-4626](https://iq.wiki/wiki/erc-4626)-compliant vault and is obtained by first approving the sfrxETH contract as a [frxETH](https://iq.wiki/wiki/frxeth-frax-ether) spender. As [validators](https://iq.wiki/wiki/validator) generate staking yield, an equivalent amount of [frxETH](https://iq.wiki/wiki/frxeth-frax-ether) is [minted](https://iq.wiki/wiki/minting) and sent to the sfrxETH contract. This means that once rewards are synced, one's [sfrxETH](https://iq.wiki/wiki/frax-ether-frxeth-and-sfrxeth) may be redeemed for a greater amount of [frxETH](https://iq.wiki/wiki/frxeth-frax-ether) than it took to mint.\n\n### frxETH\n\nfrxETH acts as a [stablecoin](https://iq.wiki/wiki/stablecoin) loosely pegged to ETH, leveraging Frax's winning playbook on [stablecoins](https://iq.wiki/wiki/stablecoin) and onboarding ETH into the Frax ecosystem.\n\n### Frax ETH Minter (frxETHMinter)\n\nFrax ETH Minter (frxETHMinter) allows the exchange of ETH for frxETH, bringing ETH into the Frax ecosystem, spinning up new [validator](https://iq.wiki/wiki/validator) nodes when able, and [minting](https://iq.wiki/wiki/minting) new frxETH equal to the amount of ETH sent. [\\[2\\]](#cite-id-xk6jgchqr8)\n\n$$widget0 [YOUTUBE@VID](ovcG90sEY4U)$$\n\n### Liquid Staking\n\nSolo ETH staking requires the technical knowledge and initial setup associated with running a [validator](https://iq.wiki/wiki/validator) [node](https://iq.wiki/wiki/node), and also that deposits be made 32 ETH at a time. By opting to use a ETH [liquid staking](https://iq.wiki/wiki/liquid-staking) derivative instead of staking ETH in another form, staking yield can be accrued much more simply, abstracting the need to run [validators](https://iq.wiki/wiki/validator), allowing yield to be earned on any amount of ETH, allowing withdrawals at any time and of any size, and allowing far greater composability throughout [DeFi](https://iq.wiki/wiki/defi).\n\n### Technical Specifications\n\n**frxETHMinter**: The frxETHMinter [mints](https://iq.wiki/wiki/minting) [frxETH](https://iq.wiki/wiki/frxeth-frax-ether) when it receives ETH either through the submit or receive function. Whenever a submission pushes the minter balance over 32 ETH, the contract pops a validator's deposit credentials off of a stack and passes the 32 ETH deposit along with the credentials to the ETH 2.0 deposit contract, automatically spinning up a new [validator](https://iq.wiki/wiki/validator).\n\nAs needed, new credentials are added to the stack to ensure that there are always [validators](https://iq.wiki/wiki/validator) ready to take deposits. If at any time the contract runs out of [validators](https://iq.wiki/wiki/validator), [frxETH](https://iq.wiki/wiki/frxeth-frax-ether) will continue to be minted as normal (unless paused) but no new [validators](https://iq.wiki/wiki/validator) will be spun up until more are added to the stack.The withdrawal credential is shared by all the [validators](https://iq.wiki/wiki/validator) on the stack, meaning all validators share the same withdrawal address. This address is set to the Frax [Multisig](https://iq.wiki/wiki/multi-signature-wallet) at launch, so that withdrawals may be safely handled once live.\n\nIn addition, when adding [validators](https://iq.wiki/wiki/validator) it is necessary to pass the DepositDataRoot as provided when generating the deposit data, this is to provide redundancy in ensuring a [validator](https://iq.wiki/wiki/validator) with wrong parameters will not be accepted when ETH is deposited.","summary":"Frax Staked Ether (sfrxETH) is a vault within the Frax Ether system that allows users to earn staking yield through deposited Frax Ether (frxETH).","images":[{"id":"QmPK3rF6TujKQWNBtukNPFvgM29A2kJb2QziySPn3Qp8DH","type":"image/jpeg, image/png"}],"categories":[{"id":"cryptocurrencies","title":"Cryptocurrencies"}],"tags":[{"id":"Ethereum"},{"id":"Protocols"},{"id":"Stablecoins"}],"media":[{"id":"QmX76ZzRLq8wMtXgit6pwgv1B7PCRyVuDn7mVXjPuL3Rxq","size":"0.16","name":"flowchart.jpg","type":"GALLERY","source":"IPFS_IMG"},{"id":"https://www.youtube.com/watch?v=ovcG90sEY4U","size":"0","name":"ovcG90sEY4U","type":null,"source":"YOUTUBE"},{"id":"https://www.youtube.com/watch?v=sa4Kz8KyBnU","size":"0","name":"sa4Kz8KyBnU","type":null,"source":"YOUTUBE"}],"metadata":[{"id":"references","value":"[{\"id\":\"yxu7cgxe3td\",\"url\":\"https://docs.frax.finance/frax-ether/overview\",\"description\":\"Frax Docs\",\"timestamp\":1673428285569},{\"id\":\"xk6jgchqr8\",\"url\":\"https://youtu.be/ovcG90sEY4U?t=1\",\"description\":\"frxETH flywheel interview with Jack Corddry\",\"timestamp\":1673428321299},{\"id\":\"jpefgby2vo\",\"url\":\"https://twitter.com/samkazemian/status/1664737658797686784\",\"description\":\"sam frxeth thread\",\"timestamp\":1686881972217},{\"id\":\"gdm4t8tj8qp\",\"url\":\"https://twitter.com/samkazemian/status/1664737669124067333\",\"description\":\"vefxs desc\",\"timestamp\":1686882153484}]"},{"id":"website","value":"https://app.frax.finance/frxeth/mint"},{"id":"twitter_profile","value":"https://twitter.com/fraxfinance"},{"id":"discord_profile","value":"https://discord.gg/qdhmm3HTqD"},{"id":"telegram_profile","value":"https://t.me/fraxfinance"},{"id":"github_profile","value":"https://github.com/FraxFinance/frxETH-public"},{"id":"coinmarketcap_url","value":"https://coinmarketcap.com/currencies/frax-staked-ether/"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/staked-frax-ether"},{"id":"fraxscan","value":"https://fraxscan.com/token/0xfc00000000000000000000000000000000000005"},{"id":"etherscan","value":"https://etherscan.io/token/0xac3e018457b222d93114458476f3e3416abbe38f"},{"id":"bscscan","value":"https://bscscan.com/token/0x3cd55356433c89e50dc51ab07ee0fa0a95623d53"},{"id":"arbiscan","value":"https://arbiscan.io/token/0x95ab45875cffdba1e5f451b950bc2e42c0053f39"},{"id":"polygonscan","value":"https://polygonscan.com/token/0x6d1fdbb266fcc09a16a22016369210a15bb95761"},{"id":"medium_profile","value":"https://fraxfinancecommunity.medium.com/"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmSaWTvYdEBGc92mV7maBh7hBckdbKij5wAyMxmEFbuMmh\""},{"id":"commit-message","value":"\"Update title and intro to \\\"Staked Frax Ether (sfrxETH)\\\".\""},{"id":"previous_cid","value":"QmSaWTvYdEBGc92mV7maBh7hBckdbKij5wAyMxmEFbuMmh"}],"events":[{"id":"xIDWSD9fCt","date":"2022-12","title":"sfrxETH Going Live","type":"CREATED","description":"sfrxETH Going Live","link":"https://docs.frax.finance/frax-ether/frxeth-and-sfrxeth"}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0xbc293Ac23c1Dae43b015172761C57589716712E6"},"language":"en","version":1,"linkedWikis":{"blockchains":["frax-finance"],"founders":["sam-kazemian","travis-moore"],"speakers":[]}}