FRAX

Overview

FRAX is a fiat-backed stablecoin used as collateral in lending protocols and as a base currency for various DeFi applications. Its role as a reliable settlement asset makes it suitable for yield strategies that involve borrowing, lending, and liquidity provision. Stablecoins like FRAX typically generate yield through supply-side lending and LP positions.

Eighteen pools across four chains and twelve protocols accept FRAX, with the best APY reaching 83%. This broad multi-chain presence offers allocators a range of options to diversify their exposure. The distribution includes popular networks such as Ethereum and several alternative L1s, providing flexibility in choosing venues for yield generation.

Tracked TVL sits at $1.09M, indicating moderate adoption compared to other stablecoins. The primary driver of APY is lending utilization rates on dominant chains and reward-token emissions from smaller protocols. Headline risk primarily stems from depegging events, compounded by smart-contract vulnerabilities when FRAX is involved in complex strategies. Higher-yield venues often carry increased risks due to more intricate contract interactions and routing complexities.

Composed 2026-05-21 from the structured data above. See methodology for the full pipeline.