> For the complete documentation index, see [llms.txt](https://docs.stakingrewards.com/sreth/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.stakingrewards.com/sreth/protocol-functionality/strategies/supported-lsts/sfrxeth-frax.md).

# sfrxETH (Frax)

Frax Ether is a system designed within the Frax Finance ecosystem to enhance the Ethereum staking process and maximize yield. It combines liquid ETH staking derivatives and stablecoins to offer a simplified, secure, and DeFi-native way to earn interest on ETH. The system consists of three primary components: Frax Ether (frxETH), Staked Frax Ether (<mark style="color:yellow;">**sfrxETH**</mark>), and the Frax ETH Minter.

frxETH serves as a stablecoin that is loosely pegged to ETH, leveraging Frax's expertise in stablecoin creation and integrating ETH into the Frax ecosystem. Users can enjoy the stability of a pegged asset while participating in ETH staking. <mark style="color:yellow;">**sfrxETH**</mark>, on the other hand, is a version of frxETH that accrues staking yield. Holders of <mark style="color:yellow;">**sfrxETH**</mark> receive the profits generated by the Frax Ether validators. By exchanging frxETH for <mark style="color:yellow;">**sfrxETH**</mark>, users become eligible to earn staking yield, which can be redeemed when converting <mark style="color:yellow;">**sfrxETH**</mark> back to frxETH.

The Frax ETH Minter plays a crucial role in the system, allowing users to exchange their ETH for frxETH and bringing ETH into the Frax ecosystem. This process enables the creation of new validator nodes and mints new frxETH tokens proportionate to the amount of ETH sent. The Frax ETH Minter ensures a seamless integration of ETH into the Frax ecosystem and facilitates a simplified and secure experience for users.

Frax Ether's innovative approach offers users the opportunity to participate in ETH staking while benefiting from the stability of a stablecoin-like asset and earning staking yield. By leveraging the Frax Finance ecosystem, the system optimizes the Ethereum staking process, providing users with a streamlined and efficient way to earn interest on their ETH holdings.


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