Frax Finance
Last changed 2026-10-10 · Score recalculated — Rescored under Scoring v2, the published formula (avoid.net/scoring): 52 → 81. Problems weighed by who is responsible: the subject's own conduct −8, incidents the subject suffered −6.4, concerns that are not fraud −3.2, problems around the subject, caused by others −1.5; legitimacy credit well known and widely used +15, long-running +10; fact-check adjustments (−10) now shown as page reliability, not in the score. Version history →
Why this score
| Every page starts at | 65 |
| The subject's own conduct | -8 |
| Concerns that are not fraud | -3.2 |
| Incidents it suffered (e.g. hacks) | -6.4 |
| Problems around it, caused by others | -1.5 |
| Well known and widely used | +15 |
| Long-running | +10 |
| Sum | 71 |
Score: 81/100 (kept between 0 and 100)
How scoring works →Summary
Frax Finance is a decentralized stablecoin protocol launched in December 2020, originally pioneering a fractional-algorithmic design for its FRAX stablecoin. Following the collapse of algorithmic stablecoins in 2022, the protocol voted in 2023 to move to full collateralization, and has since expanded into a broader DeFi ecosystem including liquid staking (frxETH), a lending market (Fraxlend), a Layer 2 blockchain (Fraxtal), and a fully-backed institutional stablecoin (frxUSD) collateralized by BlackRock's BUIDL fund. The protocol faces documented concerns about historical centralization via a core-team-controlled multisig, an unresolved bug bounty attribution dispute, and prior security incidents including a DNS domain hijacking and an X account compromise.
Connected Entities
8 entities · 60 linked investigations- ZachXBT→mentioned with→Ethereum(70%)
- Optimism→mentioned with→Ethereum(80%)
- ZachXBT→mentioned with→Binance(60%)
- BlackRock USD Institutional Digital Liquidity Fund (BUIDL)→mentioned with→Binance(80%)
- BlackRock USD Institutional Digital Liquidity Fund (BUIDL)→mentioned with→Optimism(65%)
- BlackRock USD Institutional Digital Liquidity Fund (BUIDL)→mentioned with→Ethereum(80%)
- Binance→mentioned with→Ethereum(65%)
- Frax Finance→mentioned with→ACT(60%)
- Frax Finance→mentioned with→Binance(70%)
- Frax Finance→mentioned with→Optimism(70%)
- + 6 more
Connected Through
7 shared actors · 637 investigationsDistinct actors this investigation shares with others — holders, traders, and named parties. Shared infrastructure (exchanges, pools) is excluded.
- □Ethereumorganization
- □ZachXBTorganization
- □Binanceorganization
- □Optimismorganization
Timeline(14 events)
December 2014
Sam Kazemian and Travis Moore co-found Everipedia, a for-profit wiki encyclopedia, which later becomes IQ.wiki.
Wikipedia - Sam KazemianJune 2019
Sam Kazemian begins development of Frax, a fractional-algorithmic stablecoin protocol.
IQ.wiki - Sam Kazemian20 December 2020
Frax Finance launches FRAX stablecoin and FXS governance token, founded by Sam Kazemian, Travis Moore, and Jason Huan.
IQ.wiki - Frax FinanceMay 2022
Terra/Luna UST collapse triggers broad DeFi contagion, increasing scrutiny of algorithmic stablecoins including FRAX.
CoinDesk - Frax Finance Votes to Fully Collateralize22 February 2023
Governance proposal FIP-188 passes with approximately 98% approval, directing Frax to move to 100% collateral ratio and retire algorithmic backing for FRAX stablecoin.
CoinDesk - Frax Finance Votes to Fully Collateralize Its $1B Stablecoin23 June 2023
A vulnerability in a Solidity Merkle-Patricia-Trie proof validation library affecting multiple protocols including Frax is disclosed and patched.
Binance Blog - Preventing DNS Attacks: The Frax Finance IncidentNovember 2023
Attackers hijack the frax.finance and frax.com DNS domains, redirecting traffic to malicious servers. The team works with DNS registrar Name.com to regain control. No user funds are reported stolen.
CoinDesk - Frax Finance Says its Domain Name Hijacking Has Been Resolved8 February 2024
Frax Finance launches Fraxtal, a modular Ethereum Layer 2 blockchain built on the OP Stack, as part of the Optimism Superchain.
The Block - Frax launches Layer 2 network FraxtalJune 2024
The official Frax Finance X account is compromised without a password breach. Founder Sam Kazemian alleges an 'inside job' at X by a 'serial scammer' known to blockchain investigator ZachXBT.
crypto.news - Frax Finance founder says serial scammer hacked X account2 January 2025
Frax Finance launches frxUSD, a new stablecoin backed by BlackRock's USD Institutional Digital Liquidity Fund (BUIDL), tokenized by Securitize.
PR Newswire - Frax Launches frxUSD Stablecoin backed by BlackRock BUIDL5 December 2025
A security researcher alleges reporting a critical denial-of-service vulnerability (CannotRedeemZero) in FraxEtherRedemptionQueueV2 to the Frax security team, which allegedly denies the finding and later patches it without attribution.
Frax Governance Forum - Attribution Dispute: RedemptionQueueV2 DoS Vulnerability30 December 2025
Frax Finance announces the FXS-to-FRAX token rebranding under the 'North Star' governance package (FIP-428), making FRAX the native gas token for Fraxtal.
GlobeNewswire - Future of DeFi: Frax 2025 Vision Roadmap15 January 2026
Binance lists the new FRAX token (formerly FXS) and integrates Fraxtal network support.
IQ.wiki - Frax Finance6 April 2026
frxUSD launches as a default borrowable asset on Aave V4, expanding stablecoin utility within DeFi.
DEXTools News - What Is Frax Finance: Complete FXS & FRAX Stablecoin Guide 2026Decision Log
- slot 455371438 · hash CyR84k5Jchur95tC5jLBu73M1iZUY7h8MKcYL4FH39bU
- slot 425183287 · hash FMK1PHJmdSaAPbEkehKzQbreJZ83xa6kRppEhi11wZLt
- slot 425183283 · hash 9XkBRmTMGyju14h17b3tH1zUS8MfhU2EqXtaAB4Bm5X5
- slot 423388103 · hash 5cC1wjD1caA5zWXSzGk7vtogaNkWxY22PNsFmgbyA7Dk
This investigation is cryptographically anchored to the Solana blockchain (4 decisions). 26 of 28 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 5/31/2026, 1:59:09 PM
last updated: 10/10/2026, 6:51:11 PM
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