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  "schemaVersion": "1.0.0",
  "id": "what-is-frxusd",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/what-is-frxusd/",
  "collection": "stablecoins",
  "title": "What is frxUSD? Frax USD explained",
  "description": "Read the current Frax USD design through its custodian reserves, minting caps and redemption constraints, without importing assumptions from earlier FRAX models.",
  "aliases": [
    "what is frxusd",
    "What is frxUSD Frax USD explained"
  ],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T19:26:58.461Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "Frax USD, or frxUSD, is described in current Frax documentation as a fully collateralized dollar stablecoin using permitted cash-equivalent reserve assets. Enshrined custodian contracts mint and burn against those assets within assigned caps. Redemption depends on available assets and their access requirements; it does not guarantee a holder can choose any particular custodian asset at all times.",
    "claimId": "what-is-frxusd-quick-answer",
    "sourceIds": [
      "x425-sc-frxusd"
    ]
  },
  "keyFacts": [
    {
      "label": "Structure",
      "value": "Frax documentation describes reserve management delegated to Frax Inc by the DAO.",
      "sourceIds": [
        "x425-sc-frxusd"
      ],
      "id": "structure",
      "claimId": "what-is-frxusd-fact-structure"
    },
    {
      "label": "Capacity",
      "value": "Custodian arrangements have assigned minting caps.",
      "sourceIds": [
        "x425-sc-frxusd"
      ],
      "id": "capacity",
      "claimId": "what-is-frxusd-fact-capacity"
    },
    {
      "label": "Access",
      "value": "An underlying reserve token can impose whitelist or other holder requirements.",
      "sourceIds": [
        "x425-sc-frxusd"
      ],
      "id": "access",
      "claimId": "what-is-frxusd-fact-access"
    }
  ],
  "prerequisites": [
    "cash-backed-stablecoins",
    "tokenized-money-market-funds"
  ],
  "sections": [
    {
      "id": "name",
      "heading": "Use documentation for the exact token",
      "sourceIds": [
        "x425-sc-frxusd"
      ],
      "paragraphs": [
        "This entry concerns frxUSD as documented on 2 October 2026. Do not infer its current collateral design from an older article about a differently configured FRAX product. Product names and versions matter in a protocol with multiple assets.",
        "The public documentation describes cash-equivalent reserve assets, including tokenized Treasury funds. That description is the protocol’s account of its design, not an independent asset examination by this encyclopedia."
      ]
    },
    {
      "id": "custodians",
      "heading": "Follow the asset on the other side of a redemption",
      "sourceIds": [
        "x425-sc-frxusd"
      ],
      "paragraphs": [
        "A custodian contract associates minting capacity with a reserve asset. The availability of that asset and its own eligibility rules affect which redemption can be completed.",
        "If one reserve asset has been exhausted from its custodian contract, a holder cannot assume it is still available merely because another reserve asset remains elsewhere. The token’s overall reserve design and a specific redemption route are different questions."
      ]
    },
    {
      "id": "risk",
      "heading": "Tokenized reserves still have issuers and operators",
      "sourceIds": [
        "x425-sc-frxusd"
      ],
      "paragraphs": [
        "The arrangement depends on custodian operations, reserve-token rules, delegated management and smart contracts. A Treasury-related reserve label does not remove those intermediate relationships.",
        "Before interpreting a quoted redemption as cash in a bank, identify what token or asset the contract actually returns and what further steps would be needed to convert it."
      ]
    }
  ],
  "faq": [
    {
      "question": "Does frxUSD redemption always let me choose a specific Treasury fund token?",
      "answer": "No. Frax’s documentation explicitly says redemption for a particular custodian asset is not guaranteed when that asset is unavailable, and the underlying token can impose its own access requirements.",
      "sourceIds": [
        "x425-sc-frxusd"
      ]
    }
  ],
  "claims": [
    {
      "id": "what-is-frxusd-quick-answer",
      "articleSlug": "what-is-frxusd",
      "statement": "Frax USD, or frxUSD, is described in current Frax documentation as a fully collateralized dollar stablecoin using permitted cash-equivalent reserve assets. Enshrined custodian contracts mint and burn against those assets within assigned caps. Redemption depends on available assets and their access requirements; it does not guarantee a holder can choose any particular custodian asset at all times.",
      "sourceIds": [
        "source-896ff4b7815ecbe1"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-896ff4b7815ecbe1",
          "locator": "Governance and Structure; Enshrined Custodians"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "Current delegated Frax Inc/custodian design checked. Asset availability and reserve-token whitelist limits match explicit source warning."
      }
    },
    {
      "id": "what-is-frxusd-fact-structure",
      "articleSlug": "what-is-frxusd",
      "statement": "Structure: Frax documentation describes reserve management delegated to Frax Inc by the DAO.",
      "sourceIds": [
        "source-896ff4b7815ecbe1"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-896ff4b7815ecbe1",
          "locator": "Governance and Structure; Enshrined Custodians"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
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        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "Current delegated Frax Inc/custodian design checked. Asset availability and reserve-token whitelist limits match explicit source warning."
      }
    },
    {
      "id": "what-is-frxusd-fact-capacity",
      "articleSlug": "what-is-frxusd",
      "statement": "Capacity: Custodian arrangements have assigned minting caps.",
      "sourceIds": [
        "source-896ff4b7815ecbe1"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-896ff4b7815ecbe1",
          "locator": "Governance and Structure; Enshrined Custodians"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "Current delegated Frax Inc/custodian design checked. Asset availability and reserve-token whitelist limits match explicit source warning."
      }
    },
    {
      "id": "what-is-frxusd-fact-access",
      "articleSlug": "what-is-frxusd",
      "statement": "Access: An underlying reserve token can impose whitelist or other holder requirements.",
      "sourceIds": [
        "source-896ff4b7815ecbe1"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-896ff4b7815ecbe1",
          "locator": "Governance and Structure; Enshrined Custodians"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
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      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T19:26:58.461Z",
        "reviewer": "Independent automated verification — Codex DeFi agent, separate from the stablecoin drafting agent",
        "notes": "Current delegated Frax Inc/custodian design checked. Asset availability and reserve-token whitelist limits match explicit source warning."
      }
    }
  ],
  "sources": [
    {
      "id": "x425-sc-frxusd",
      "label": "Frax USD stablecoin",
      "publisher": "Frax documentation",
      "url": "https://docs.frax.com/protocol/assets/frxusd/frxusd",
      "locator": "Governance and Structure; Enshrined Custodians",
      "note": "Current delegated reserve management, mint caps and asset-specific redemption availability.",
      "version": "Document retrieved 2026-10-02; content hash recorded",
      "checkedAt": "2026-10-02T18:51:09.631Z",
      "contentSha256": "c87f195937f7a0a2b1c068b91546d3d76d1353c74b7bbd6d9c1df1760b34c581",
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  ],
  "related": {
    "articles": [
      "stablecoin-reserve-segregation",
      "stablecoin-off-ramps",
      "stablecoin-yield-sources",
      "what-is-bold",
      "what-is-pax-gold"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and separate automated verification."
    }
  ],
  "citation": "Degrees of Satoshi editorial project. “What is frxUSD? Frax USD explained.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/what-is-frxusd/"
}