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![Ikebillion_ Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1174585044846948352.png) IkeBillion.eth [@Ikebillion_](/creator/twitter/Ikebillion_) on x 2152 followers
Created: 2025-02-01 11:00:23 UTC

Frax for Normies. Episode X
Understanding Frax Ether (frxETH) on Fraxtal

Frax Ether (frxETH) is a liquid ETH stakind derivative and stablecoin system that helps users leverage the Frax Finance ecosystem to maximize staking yield and smoothen the Ethereum staking process on their ETH in a secure and decentralized way. ETH in the Frax ecosystem comes in two forms; frxETH (Frax Ether) which is similar to WETH, and one LST—sfrxETH (Staked Frax Ether) which is similar to stETH. frxETH is also used as the native gas token within the Frax ecosystem.

Key Features of Frax Ether:
· Earn Staking Rewards: sfrxETH allows users to earn interest from Ethereum staking.
· Gas Token on Fraxtal: frxETH is used to pay for transactions on Fraxtal.
· Independent from FRAX's $X Peg: frxETH maintains its own balance sheet and value, separate from FRAX, the stablecoin.

How the Frax Ether System Works
There are three main parts of the Frax Ether system:
X. Frax Ether (frxETH)
· frxETH is loosely pegged to ETH (staying within X% of ETH’s price).
· It brings ETH into the Frax ecosystem and allows users to earn rewards.

X. Staked Frax Ether (sfrxETH)
· When users stake frxETH, they receive sfrxETH, which earns staking rewards.
· All staking profits from Frax validators go to sfrxETH holders.
· Users can convert sfrxETH back to frxETH to claim their staking rewards.

X. Frax ETH Minter (frxETHMinter)
· The Minter lets users swap ETH for frxETH.
· When ETH is deposited, Frax uses it to create new validator nodes and mints an equal amount of frxETH.

How to Get frxETH on Fraxtal
There are two main ways to bring frxETH into Fraxtal using its official bridges:
X. Bridge ETH (from Ethereum mainnet) → You receive frxETH on Fraxtal.
X. Bridge frxETH (an ERC20 token on Ethereum mainnet) → You receive frxETH on Fraxtal.

If you ever want to move frxETH back to Ethereum mainnet, it returns as ERC20 frxETH.

What Happens if You Bridge WETH?
If you bridge Wrapped ETH (WETH) to Fraxtal, you will receive WETH on Fraxtal.

However, you cannot unwrap WETH into ETH on Fraxtal because Fraxtal replaces ETH with frxETH.

Why Use Frax Ether?
Frax Ether is the first fully decentralized LST with the v2 upgrade which means anyone can spin up a validator if they manage to stay competitve!

Notable mentions to learn more about Frax Finance:
@fraxfinance 
@FraxGod 
@samkazemian 
@_kaitoai

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**Related Topics**
[all the](/topic/all-the)
[fraxfinance](/topic/fraxfinance)
[blockchain](/topic/blockchain)
[decentralized](/topic/decentralized)
[staking](/topic/staking)
[finance](/topic/finance)
[coins stablecoin](/topic/coins-stablecoin)
[liquid](/topic/liquid)

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