Who controls it
Legacy FRAX is a governance-managed stablecoin with mixed on-chain and centralized collateral; it is a separate balance sheet from the current reserve-backed frxUSD product.
- Backing
- A governance-managed combination of on-chain collateral and centralized assets distinct from the newer frxUSD balance sheet.
- Holder’s claim
- Legacy FRAX is a protocol stablecoin. It is a different legal and reserve product from current frxUSD.
- Redemption or sale
- Holders redeem through Frax protocol facilities or sell in the market; current frxUSD redemption terms do not apply to it.
Dependencies
- Frax governance
- Legacy collateral contracts
- Centralized collateral issuers and custodians
- Secondary-market liquidity
Losses and incidents
- Frax governance formally separated the balance sheets of legacy FRAX and frxUSD; the similar tickers name two different products.
Advisor notes
Controlling party: Frax governance and protocol operating roles. Check whether the client can redeem directly with the issuer. Holding the token on chain leaves every reserve, custody, contract, and legal dependency in place.
On-chain mechanisms sit beside custodians, real-world assets, a central transaction orderer, or other parties a court or regulator can compel. This grade can sit beside a sound reserve, a useful product, or a fitting role in a client account. It records who can act on the token and passes no judgment on the product.
Questions before use
- Does the exact contract and chain match the instrument reviewed here?
- Which party can mint, burn, pause, upgrade, block, or redeem?
- Does the client have direct redemption access or only secondary liquidity?
- What protocol, bridge, wallet, and custodian dependencies are added?
- Which event would force a review or a sale?
Sources
- Frax Governance: FIP-430 · primary
- Frax: Documentation · primary
- DefiLlama: Stablecoins circulation dataset · secondary
Issuers can change their documents and product terms. This page gives our reading of control as of 2026-08-19. Check the current terms before a client buys.
Legend: No freeze key: no issuer or administrator can freeze an address at this layer · Governed, no freeze: on-chain collateral and governance set the terms, but no issuer blocklist exists · Mixed control: on-chain mechanisms sit beside custodians, real-world assets, a central transaction orderer, or other parties a court or regulator can compel · Issuer can freeze: a named organization or administrator controls issuance, transfers, reserves, redemption, or address restrictions. How grading works.