stablecoin protocol review

Frax Finance

Stablecoin and DeFi product suite with FRAX, AMOs, lending, liquidity, and cross-chain deployments.

partialmedium

TVL

$1.70B

Protocol reported or analyst-entered value.

Exposure

$1.20B

Mapped collateral and market exposure.

Dependencies

0 critical dependencies.

Markets

3 monitor signals configured.

Protocol facts

Static fields from the typed research record.

ProductsFRAX, AMOs, Fraxlend, Liquidity products

ChainsEthereum, Arbitrum One, OP Mainnet, Polygon PoS

Categorystablecoin

Review statuspartial

Collateral, oracle, cap, and liquidation parameters by market.

1 rows

Market	Chain	Collateral	Oracles	LTV	Liquidation	Supply cap	Borrow cap	Utilization
FRAX stablecoin and lending	Ethereum	FRAX USDC USDT WETH	oracle:ethereum:frax:oracle, oracle:ethereum:chainlink:stablecoins	72%	78%	$900.0M	$520.0M	63.0%

Findings separate the observed evidence from the analyst outcome.

Severity	Dimension	Finding	Outcome	Evidence	Sources
medium	exposure concentration	AMO and cross-product exposure	Peg support can depend on protocol-managed strategies.	Frax products share governance and liquidity dependencies.	Frax docs

Inbound and outbound trust assumptions touching this protocol.

Severity	Direction	Edge type	Dependency path	Analyst label
medium	outbound	accepts collateral	Frax Finance -> USDC	Frax Finance FRAX stablecoin and lending accepts USDC as collateral or core liquidity
medium	outbound	accepts collateral	Frax Finance -> USDT	Frax Finance FRAX stablecoin and lending accepts USDT as collateral or core liquidity
medium	inbound	governed by	FRAX -> Frax Finance	FRAX depends on Frax governance and AMO policy
low	outbound	settles on	Frax Finance -> Ethereum	Frax Finance deployment inherits Ethereum settlement risk
low	outbound	accepts collateral	Frax Finance -> FRAX	Frax Finance FRAX stablecoin and lending accepts FRAX as collateral or core liquidity
low	outbound	accepts collateral	Frax Finance -> WETH	Frax Finance FRAX stablecoin and lending accepts WETH as collateral or core liquidity

Public operational signals and review cadence.

Status	Monitor	Signal	Cadence
planned	Admin and guardian changes	Owner, guardian, Safe signer, threshold, and emergency role changes.	15 min after ingestion
planned	Oracle freshness	Heartbeat breaches, stale rounds, and large reference-market deviations.	5 min after ingestion
manual	Liquidity and cap shock	Supply cap utilization, borrow cap utilization, TVL drops, and liquidity depth changes.	Daily analyst review

Highest-severity paths that could transmit risk into or out of this protocol.

6 paths

Severity	Direction	Edge type	Dependency path	Analyst label
medium	outbound	accepts collateral	Frax Finance -> USDC	Frax Finance FRAX stablecoin and lending accepts USDC as collateral or core liquidity
medium	outbound	accepts collateral	Frax Finance -> USDT	Frax Finance FRAX stablecoin and lending accepts USDT as collateral or core liquidity
medium	inbound	governed by	FRAX -> Frax Finance	FRAX depends on Frax governance and AMO policy
low	outbound	settles on	Frax Finance -> Ethereum	Frax Finance deployment inherits Ethereum settlement risk
low	outbound	accepts collateral	Frax Finance -> FRAX	Frax Finance FRAX stablecoin and lending accepts FRAX as collateral or core liquidity
low	outbound	accepts collateral	Frax Finance -> WETH	Frax Finance FRAX stablecoin and lending accepts WETH as collateral or core liquidity