# Staked Frax Ether (sfrxETH) > Frax Staked Ether (sfrxETH) is a vault within the Frax Ether system that allows users to earn staking yield through deposited Frax Ether (frxETH). - Canonical URL: https://iq.wiki/wiki/frax-ether-frxeth-and-sfrxeth - Categories: Cryptoassets - Tags: Infrastructure - Created: 2023-01-11T09:12:58.412Z - Last updated: 2025-05-28T14:51:32.477Z - Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki) --- **Staked Frax Ether (sfrxETH)** is a [liquid staking](https://iq.wiki/wiki/liquid-staking)[ derivative](https://iq.wiki/wiki/derivative) [stablecoin](https://iq.wiki/wiki/stablecoin) by [Frax Finance](https://iq.wiki/wiki/frax-finance). sfrxETH is the staked version of [frxETH](https://iq.wiki/wiki/frxeth-frax-ether) designed to accrue the staking yield of the Frax ETH [validators](https://iq.wiki/wiki/validator). The exchange rate of [frxETH](https://iq.wiki/wiki/frxeth-frax-ether) per sfrxETH increases over time as [staking](https://iq.wiki/wiki/staking) rewards accrue to the vault. ![flowchart.jpg](https://ipfs.everipedia.org/ipfs/QmX76ZzRLq8wMtXgit6pwgv1B7PCRyVuDn7mVXjPuL3Rxq) ## Overview The Frax Ether system comprises three primary components, [Frax Ether (frxETH)](https://iq.wiki/wiki/frxeth-frax-ether), Staked Frax Ether (sfrxETH), and the Frax ETH Minter: ### sfrxETH sfrxETH is the version of [frxETH](https://iq.wiki/wiki/frxeth-frax-ether) that accrues staking yield. All profit generated from Frax Ether validators is distributed to sfrxETH holders. By exchanging [frxETH](https://iq.wiki/wiki/frxeth-frax-ether) for sfrxETH, one becomes eligible for staking yield, which is redeemed upon converting sfrxETH back to [frxETH](https://iq.wiki/wiki/frxeth-frax-ether). It is an [ERC-4626](https://iq.wiki/wiki/erc-4626)-compliant vault and is obtained by first approving the sfrxETH contract as a [frxETH](https://iq.wiki/wiki/frxeth-frax-ether) spender. As [validators](https://iq.wiki/wiki/validator) generate staking yield, an equivalent amount of [frxETH](https://iq.wiki/wiki/frxeth-frax-ether) is [minted](https://iq.wiki/wiki/minting) and sent to the sfrxETH contract. This means that once rewards are synced, one's [sfrxETH](https://iq.wiki/wiki/frax-ether-frxeth-and-sfrxeth) may be redeemed for a greater amount of [frxETH](https://iq.wiki/wiki/frxeth-frax-ether) than it took to mint. ### frxETH frxETH acts as a [stablecoin](https://iq.wiki/wiki/stablecoin) loosely pegged to ETH, leveraging Frax's winning playbook on [stablecoins](https://iq.wiki/wiki/stablecoin) and onboarding ETH into the Frax ecosystem. ### Frax ETH Minter (frxETHMinter) Frax ETH Minter (frxETHMinter) allows the exchange of ETH for frxETH, bringing ETH into the Frax ecosystem, spinning up new [validator](https://iq.wiki/wiki/validator) nodes when able, and [minting](https://iq.wiki/wiki/minting) new frxETH equal to the amount of ETH sent. [\[2\]](#cite-id-xk6jgchqr8) ### Liquid Staking Solo ETH staking requires the technical knowledge and initial setup associated with running a [validator](https://iq.wiki/wiki/validator) [node](https://iq.wiki/wiki/node), and also that deposits be made 32 ETH at a time. By opting to use a ETH [liquid staking](https://iq.wiki/wiki/liquid-staking) derivative instead of staking ETH in another form, staking yield can be accrued much more simply, abstracting the need to run [validators](https://iq.wiki/wiki/validator), allowing yield to be earned on any amount of ETH, allowing withdrawals at any time and of any size, and allowing far greater composability throughout [DeFi](https://iq.wiki/wiki/defi). ### Technical Specifications **frxETHMinter**: The frxETHMinter [mints](https://iq.wiki/wiki/minting) [frxETH](https://iq.wiki/wiki/frxeth-frax-ether) when it receives ETH either through the submit or receive function. Whenever a submission pushes the minter balance over 32 ETH, the contract pops a validator's deposit credentials off of a stack and passes the 32 ETH deposit along with the credentials to the ETH 2.0 deposit contract, automatically spinning up a new [validator](https://iq.wiki/wiki/validator). As needed, new credentials are added to the stack to ensure that there are always [validators](https://iq.wiki/wiki/validator) ready to take deposits. If at any time the contract runs out of [validators](https://iq.wiki/wiki/validator), [frxETH](https://iq.wiki/wiki/frxeth-frax-ether) will continue to be minted as normal (unless paused) but no new [validators](https://iq.wiki/wiki/validator) will be spun up until more are added to the stack.The withdrawal credential is shared by all the [validators](https://iq.wiki/wiki/validator) on the stack, meaning all validators share the same withdrawal address. This address is set to the Frax [Multisig](https://iq.wiki/wiki/multi-signature-wallet) at launch, so that withdrawals may be safely handled once live. In addition, when adding [validators](https://iq.wiki/wiki/validator) it is necessary to pass the DepositDataRoot as provided when generating the deposit data, this is to provide redundancy in ensuring a [validator](https://iq.wiki/wiki/validator) with wrong parameters will not be accepted when ETH is deposited.