Frax launches burn engine to buy back and burn FRAX using frxETH protocol revenue

Frax Finance's Burn Engine is live, and 100% of the 8% protocol fee it retains on frxETH staking revenue will now programmatically buy FRAX on the open market and burn it. frxETH, a $120M TVL product, generated $53.4K in protocol fees in Q3, or $214K annualized, the company said. Revenue begins flowing into the engine in Q4 per the Q3 report. FRAX has a capped supply. The company said the burn grows as ETH appreciates and frxETH adoption increases, with more revenue sources and utility planned. sfrxETH has delivered 4.07% APR since October 2022, outperforming wstETH by 67 bps, Frax said.

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• Ethereum
• Launch
• FRAX
• Buybacks