# Ketju research: Frax USD (frxUSD)

- URL: https://riadefi.com/rejections/frax-usd/
- Verdict: rejected
- Type: Tokenized real-world assets
- Reviewed: 2026-08-17
- Last confirmed: 2026-08-17

## Research summary

This adverse review corrects a join-key gap in this registry's own coverage. The registry's existing "frax" entry, project id `frax`, joins to DefiLlama's legacy algorithmic FRAX record. That mostly dormant, UST-depeg-era product now carries roughly $44M of TVL. It does not join to the live, custodian-backed frxUSD product that DefiLlama tracks under the separate `frax-usd` slug, currently around $111M of TVL. The registry's own rule says a chain or project id must match the feed's string exactly or a rejection silently no-ops. The existing "frax" rejection therefore has not matched live frxUSD pool data at all. This entry closes that gap with the correct join key. The findings on frxUSD itself remain the same. Six "enshrined" custodians, including BlackRock's BUIDL, which this registry already rejected, mint and redeem it instead of one custodian holding a single reserve. No reproducible, dated, line-by-line reserve report was found. The contract's freeze and blacklist authority reportedly has no enforced timelock, so an admin could act without delay. sfrxUSD, the separate yield-bearing wrapper with a rotating-collateral strategy, remains a distinct risk that the existing "frax" entry rejects separately.

## Observable review triggers

- A reproducible, dated, line-by-line reserve report covering every enshrined custodian and any encumbrances is published
- The freeze and blacklist admin function is placed behind an enforced timelock
- The reserve composition sheds dependency on any custodian this registry has independently rejected, or those custodians clear their own rejections
- This registry's existing "frax" entry is reconciled with this one so the two project ids do not present conflicting guidance on the same underlying frxUSD/sfrxUSD product family

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Published by Ketju Research (https://ketjuresearch.com). Educational analysis only; not legal, tax, compliance, or investment advice.
Machine-readable index: https://riadefi.com/llms.txt · Content API: https://riadefi.com/content.json