Wrapped FRAXPrice

(WFRAX)

FRAX serves as the native gas token for the Fraxtal L2 blockchain, essential for covering transaction fees and securing the network. WFRAX, on the other hand, is an ERC-20 compliant Omnichain Fungible Token (OFT) version of FRAX. It's designed for broader interoperability, allowing users to trade on decentralized exchanges and bridge the asset across various blockchain networks, including Ethereum, Arbitrum, or Solana, facilitating wider ecosystem participation.

No, this is a crucial distinction. The asset formerly known as the FRAX stablecoin has been rebranded to frxUSD. The current FRAX and its wrapped form, WFRAX, are no longer stablecoins. They now function as a commodity asset, deriving from the token previously known as FXS. FRAX/WFRAX is primarily utilized for gas payments on the Fraxtal network and for governance participation, with its market value fluctuating based on supply and demand dynamics, rather than being pegged to a specific fiat currency.

After the significant "North Star" upgrade, your FXS tokens underwent a rebranding and migration. FXS was officially renamed to FRAX. Users were provided with a straightforward 1:1 migration path to convert their FXS into the new FRAX tokens. This process could be completed through the official Frax dashboard or by utilizing major cryptocurrency exchanges, many of which facilitated and finalized the automatic swap for users in early 2026.

Bridging WFRAX across various blockchain networks operates on a "Hub and Spoke" architectural model. When you wish to transfer WFRAX from one blockchain, let's say Chain A, to another, like Chain B, the transaction typically routes through Fraxtal. Fraxtal acts as the central hub in this process, leveraging LayerZero technology to ensure secure and efficient cross-chain transfers. This design streamlines interoperability, enabling WFRAX to maintain its omnichain fungibility across the ecosystem.

WFRAX offers several core utilities within the Frax Finance ecosystem. A primary use is providing liquidity in various decentralized finance (DeFi) pools, such as WFRAX/frxUSD or WFRAX/FRAX pairings, to facilitate trading and earn fees. Additionally, WFRAX can be locked for a specified period to obtain veFRAX (vote-escrowed FRAX). Holding veFRAX is crucial for participating in the protocol's governance, allowing you to vote on key proposals and potentially receive a share of the protocol's rewards and incentives, contributing to the ecosystem's direction and success.

WFRAX holders have several avenues to generate yield within the Frax ecosystem. A prominent strategy involves providing liquidity to various decentralized exchange pools, such as those on Uniswap V4, Velodrome Slipstream, or the native Fraxswap. This allows users to earn trading fees and other liquidity incentives. Furthermore, locking WFRAX to acquire veFRAX opens up additional yield opportunities. veFRAX holders are eligible to earn "Flox" incentives, which are blockspace rewards from the Fraxtal network, alongside other potential ecosystem distributions, aligning user incentives with protocol growth.