Frax Finance

Frax Finance runs a family of stablecoin and DeFi products: frxUSD (a fiat-backed dollar stablecoin), the sfrxUSD and sfrxETH yield tokens, the Fraxswap AMM and the Fraxtal layer 2. Frax launched in 2020 as a fractional-algorithmic stablecoin and has since moved to fully collateralized designs.

Rating B: 2 restrictions: Wallet screening, KYC / allowlist. Stablecoin / DeFi suite · Ethereum, Fraxtal, Arbitrum, Base, Optimism.

Official app: frax.com. Frontend code: closed.

Restrictions

• Geo Block: n/a.
• Feature Block: n/a.
• Wallet screening: reported. frxUSD contract-level blacklist for sanctions (third-party reviews) Where it runs: smart contract. Fail mode: n/a.
• VPN / Tor detection: n/a.
• KYC / allowlist: reported. Identity verification with Persona as part of frxUSD compliance (Persona case study).
• Terms of Service: frax.com/frxUSD, Last updated unknown. frxUSD Terms of Service not retrieved.

Notes

Closed frontend. Core Frax contracts are public; frxUSD mint/redeem through the custodian route has compliance requirements.

Evidence

• llamarisk.com/research/pegkeeper-onboarding-frxusd
• chaoslabs.xyz/posts/frxusd-token-review
• withpersona.com/customers/frax-builds-a-global-compliance-program-for-crypto-native-users-in-one-month

Checked 2026-10-10. All interfaces · Methodology