Frax Ether (FRXETH) is a liquid ETH staking derivative in the Frax Finance ecosystem, simplifying and securing Ethereum staking while offering a DeFi-native method for earning interest on ETH holdings. FRXETH acts as a stablecoin loosely pegged to ETH, integrating Ethereum into the Frax ecosystem. It’s used for staking Ethereum in a DeFi environment, allowing users to earn staking yield on their Ethereum investments. FRXETH can be exchanged for sfrxETH by depositing it into an ERC-4626 vault, designed to accrue the staking yield of the Frax ETH validators.
