Frax Finance
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
1 entities · 10 linked investigations- + 4 more
Timeline(14 events)
2014-12-01
Sam Kazemian and Travis Moore co-found Everipedia, a for-profit wiki encyclopedia, which later becomes IQ.wiki.
Wikipedia - Sam Kazemian2019-06-01
Sam Kazemian begins development of Frax, a fractional-algorithmic stablecoin protocol.
IQ.wiki - Sam Kazemian2020-12-20
Frax Finance launches FRAX stablecoin and FXS governance token, founded by Sam Kazemian, Travis Moore, and Jason Huan.
IQ.wiki - Frax Finance2022-05-01
Terra/Luna UST collapse triggers broad DeFi contagion, increasing scrutiny of algorithmic stablecoins including FRAX.
CoinDesk - Frax Finance Votes to Fully Collateralize2023-02-22
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 Stablecoin2023-06-23
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 Incident2023-11-01
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 Resolved2024-02-08
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 Fraxtal2024-06-01
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 account2025-01-02
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 BUIDL2025-12-05
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 Vulnerability2025-12-30
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 Roadmap2026-01-15
Binance lists the new FRAX token (formerly FXS) and integrates Fraxtal network support.
IQ.wiki - Frax Finance2026-04-06
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
- hash: 5cC1wjD1caA5zWXSzGk7vtogaNkWxY22PNsFmgbyA7Dk
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/31/2026, 1:59:09 PM
last updated: 5/31/2026, 1:59:14 PM
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