veFXS & Gauge Weights
veFXS is the vote-escrowed governance token of Frax Finance. Lock FXS for up to four years and receive veFXS - a non-transferable token that grants voting rights over how FCA (Frax Credit Asset) protocol emissions are distributed every two weeks. As with veCRV, this created a vibrant Frax gauge wars where protocols and traders compete to redirect emissions worth millions of dollars, paying bribes to veFXS holders in the process.
veFXS by the Numbers
Lock Time Simulator - FXS -> veFXS Power
Slide the lock duration to see how your FXS holdings convert to veFXS voting power. Unlike linear staking, veFXS scales with lock time - lock 4 years to get the full 1:1 ratio. Lock 1 year and you get 25% of that power. The comparison shows equivalent veCRV for perspective.
? FCA Gauge Weights - Where $8M/week Flows
Every two weeks, veFXS holders vote on how to distribute FCA emissions across approved gauges. Fraxswap pools, bridged Curve pools, and Fraxlend markets all compete for these emissions. The top gauges consistently absorb ~65% of total emissions.
Bribe Economics - Buy Votes, Redirect Millions
Protocols post bribes to veFXS holders to redirect FCA emissions toward pools that benefit them. The math mirrors the Curve Wars: a $60k bribe to capture $2.4M/year in FCA emissions is a 40 return. The Frax bribe market is accessed via Votium, Hidden Hand, and Frax's own governance UI.
? veFXS vs veCRV - Key Differences
Frax's veFXS system was built on the shoulders of Curve's veCRV, but with important design differences that affect governance power, bribe income, and protocol integration. Here's how they compare:
Frax Finance Overview
Frax's fractional-algorithmic stablecoin, AMO controller, collateral ratio, and all-chain expansion
Fraxswap AMM
The custom AMM built for FRAX pairs - bonding curves, concentrated liquidity, and FRAX-native swap fees
Fraxlend
Permissionless lending markets for FRAX and other collateral - interest rate curves, health factors, and liquidation logic
Fraxtal & Mode
Frax's L2 chains - Fraxtal and Mode use Frax's native stablecoin infrastructure as the gas currency
How veFXS works
veFXS is earned by time-locking FXS in the Frax gauge system. Unlike a simple staking token that accrues yield automatically, veFXS is purely a governance token - it has no intrinsic yield. Its value comes from three sources: (1) FCA token emissions proportional to your gauge vote weight; (2) bribes paid by protocols wanting to redirect those emissions; and (3) a share of Fraxswap trading fees from pools you vote emissions toward. Every two weeks, a new epoch begins where the gauge weights are reset by the latest veFXS voting.
The veFXS calculation is linear: veFXS = FXS locked (remaining lock time / 4 years). Lock 10,000 FXS for exactly 4 years and you have 10,000 veFXS. Lock the same 10,000 for 2 years and you have 5,000 veFXS. As each day passes, the remaining lock time shrinks, so voting power decays linearly unless you extend the lock. Unlike veCRV which requires a fresh lock transaction to reset the expiry timer, veFXS lock extensions can be done at any time to any future duration up to 4 years - making continuous governance participation much easier.
The gauge system directs FCA (Frax Credit Asset) emissions. FCA is a weekly emission token distributed to gauges proportionally. veFXS holders vote on the weights - e.g. 30% to Fraxswap FRAX/USDC, 20% to bridged Curve FRAX3CRV, 10% to Fraxlend markets, and 40% spread across other approved pools. Protocols post bribes to influence these votes: a DeFi protocol might pay $50k to redirect $2M/year in FCA emissions toward their pool, earning a 40 return on the bribe cost. This creates a self-sustaining bribe economy that rivals the veCRV market in sophistication.
Frax's system also integrates with Curve via bridged gauges - veFXS holders can vote to direct some FCA emissions toward Curve pools bridged via Ankr or Across, giving Frax influence over Curve's emission ecosystem as well. This dual-platform reach is unique: veFXS controls both Frax's native AMM (Fraxswap) and Curve infrastructure, making it one of the most powerful vote-escrow tokens in DeFi.
Key concepts
- FXS time-lock and veFXS calculation
- FXS holders lock their tokens for up to 4 years in exchange for veFXS. The veFXS balance = FXS locked (remaining lock time / 4 years). As time passes, remaining lock decreases and so does veFXS. Holders can extend their lock duration at any time to any future duration up to 4 years, restoring voting power. At lock expiry, FXS becomes freely transferable again and veFXS goes to zero.
- FCA (Frax Credit Asset) emissions
- FCA is the weekly emission token of Frax Finance, distributed to veFXS holders proportional to their gauge weight votes. Unlike CRV, FCA is not locked - it can be claimed and sold immediately. FCA emissions are the primary yield stream for veFXS holders who vote for productive gauges. The total weekly FCA emission is approximately $8M as of 2026.
- Biweekly gauge voting
- Every two weeks (a "epoch"), the gauge weights are reset based on the latest veFXS voting. veFXS holders can split their votes across multiple gauges - e.g. 40% to Fraxswap FRAX/USDC, 25% to Curve bridged pools, 15% to Fraxlend markets. The weights determine what fraction of FCA emissions each pool receives. Gauge votes take effect at the start of the next epoch after the voting window closes.
- Bribe marketplace
- Protocols and traders post bribes to veFXS holders to redirect FCA emissions. Bribes are typically paid in FXS, USDC, or the protocol's own token. The main venues are Votium (now on Convex), Hidden Hand, and Frax's own governance UI. Bribe size is negotiated in the open market - the ROI calculation for protocols is straightforward: if a pool generates $2M/year in FCA emissions, a $50k bribe is a 40 return. Large veFXS holders can earn significant extra income from bribes on top of their FCA emissions.
- Fraxswap gauge integration
- Fraxswap is Frax's custom AMM forked from Solidly/Velodrome. Its pools are integrated with the veFXS gauge system - when veFXS holders vote for a Fraxswap pool gauge, that pool receives FCA emissions, boosting LP yields. This creates a feedback loop: more veFXS votes -> more FCA emissions to Fraxswap -> more attractive LP yields -> more TVL -> more FRAX utility. Fraxswap gauges are the primary destinations for FCA emissions on Ethereum mainnet.
- Bridged Curve gauges
- Frax's gauge system extends beyond Fraxswap - veFXS holders can vote to direct some FCA emissions toward Curve pools bridged via Ankr, Across, or LayerZero. This gives Frax governance influence over Curve's emission ecosystem, similar to how Convex aggregates veCRV to control Curve gauges. The bridged gauge system means Frax's influence spans both Fraxswap (its own AMM) and Curve (the broader DeFi infrastructure).
- Solidly Finance (cvxFXS equivalent)
- Solidly Finance is Frax's answer to Convex - it aggregates FXS from users who don't want to lock directly, issues them a wrapped derivative (similar to cvxCRV), and uses the aggregated veFXS to participate in gauge voting. Users deposit FXS in Solidly to receive a yield-bearing token without committing to a four-year lock. Solidly's own governance token (SOLID) benefits from the bribe income and gauge influence its users provide.
Why veFXS matters
veFXS is one of the most structurally powerful governance tokens in DeFi because it controls FCA emissions across two major AMM ecosystems simultaneously. Where veCRV controls emissions only for Curve pools, veFXS controls emissions for Fraxswap (Frax's native AMM) and bridged Curve pools - giving it influence over the stablecoin LP infrastructure of both protocols. This dual-layer control, combined with the bribe marketplace and the Frax AMO's autonomous yield generation, creates a self-reinforcing flywheel: FCA emissions attract TVL to Fraxswap, which grows trading fees, which funds FXS buybacks, which makes FXS more valuable, which attracts more lockers, which grows veFXS voting power.
The bribe economy has matured to the point where large veFXS holders earn more from bribes than from the underlying FCA tokens - the rental market for FRAX ecosystem liquidity is that deep. As of 2026 the total bribe flow is over $40M annually, making veFXS one of the highest-income vote-escrow tokens per unit of voting power. Understanding veFXS is essential for anyone analyzing Frax's governance, the stablecoin wars, or the Curve Wars' next chapter.
Frequently asked questions
- How is veFXS different from veCRV?
- The core mechanics are similar - lock the governance token, get voting power proportional to lock time, vote on gauges every two weeks. The key differences: (1) veFXS is used for FCA (Frax Credit Asset) emissions rather than CRV; (2) Frax's AMO generates real yield that flows to the Surplus Buffer, creating a revenue stream that veFXS holders partially control through gauge votes; (3) Frax's Solidly/Velodrome fork of the AMM means veFXS gauges can direct emissions to Fraxswap pools and external Curve pools simultaneously, giving it a multi-platform reach comparable to Convex.
- What determines the veFXS power calculation?
- veFXS balance = FXS locked (remaining lock time / 4 years). A wallet that locks 10,000 FXS for 4 years has 10,000 veFXS. Lock it for 2 years and you have 5,000 veFXS. The lock is set when you stake FXS, and the remaining time is calculated on-chain at each vote/block. Unlike veCRV which requires a fresh lock transaction to reset the expiry, veFXS lock times can be extended at any time by the holder - which is one quality-of-life advantage over Curve's system.
- How do bribes work in the Frax gauge system?
- Protocols and traders who want to redirect FCA emissions post bribes to veFXS holders via Votium, Hidden Hand, or the Frax Finance UI. The bribe value is negotiated in the open market - typically ranging from $5k to $200k per gauge per epoch depending on the pool's TVL and the value of the FCA emissions being targeted. A protocol that pays a $50k bribe to shift $2M/year in FCA emissions toward their pool earns a 40 return on the bribe, which is why the bribe market is deeply liquid. Large veFXS holders often earn more from bribes than from the underlying FCA token appreciation.
- What is the FCA token and how are its emissions governed?
- FCA (Frax Credit Asset) is Frax's point-in-time governance and emission token. It is distributed weekly to veFXS holders proportional to their gauge weight votes. FCA can be claimed and traded like any ERC-20, and is not locked. The emissions schedule is governed by the gauge system - each epoch, the gauges determine how much FCA goes to each pool. As of 2026, FCA emissions total approximately $8M per week across all gauges, making it one of the most valuable emission streams in DeFi.
- Can I still earn FXS staking rewards by holding veFXS?
- No - FXS has no staking yield. veFXS earns: (1) FCA token emissions from gauge votes you participate in; (2) a share of trading fees from Fraxswap pools you vote emissions toward; (3) bribes from protocols wanting to redirect your gauge votes. The FXS token's only value accrual mechanism is the Surplus Buffer being used to buy back and burn FXS on the open market, which is a governance decision, not an automatic staking reward. This is fundamentally different from CRV, where some yields are direct.
- What happens when my veFXS lock expires?
- At expiry, your FXS automatically unlocks and becomes transferable again - veFXS goes to 0 and your voting power disappears. The contract enforces this by not allowing votes from addresses with expired locks. You must either not lock (stay liquid) or plan to extend/relock before expiry to maintain voting power. Most large veFXS holders use reminder systems or automatic delegation tools to prevent accidental expiry.