Summary
Ketju does not approve Frax USD (frxUSD): two of its six reserve custodians are products Ketju does not approve. No dated reserve report breaks the six down. Its freeze power also reportedly has no timelock. Six "enshrined" custodians mint and redeem frxUSD, so no single custodian holds one reserve. One of them is BlackRock’s BUIDL, which Ketju does not approve. We found no reproducible, dated, line-by-line reserve report. The contract’s freeze and blacklist authority reportedly has no enforced timelock, so an admin could act without delay. This memo also fixes a gap in Ketju’s coverage. Ketju’s Frax memo is matched to DefiLlama’s listing for legacy algorithmic FRAX, which holds roughly $44M. Live frxUSD, around $111M, sits under a separate listing. The Frax memo’s verdict therefore never reached live frxUSD pools; this memo covers them, and its findings on frxUSD are the same.
Review triggers
- A reproducible, dated, line-by-line reserve report covering every enshrined custodian and any encumbrances is published
- The freeze and blacklist admin function is placed behind an enforced timelock
- The reserves stop depending on any custodian Ketju does not approve, or those custodians gain approval
- Ketju reconciles its Frax memo with this one so the two give no conflicting guidance on the frxUSD/sfrxUSD family
Facts
- Verdict
- Not approved
- Type
- Tokenized real-world assets
- Chains examined
- Ethereum
- Instruments
- FRXUSD
- Reviewed
- Last confirmed