Decentralised finance protocol (DeFi) In a recent interview, CEO and creator Sam Kazemian of Frax Finance, which is home to one of the biggest stablecoins in the world, stated that the company plans to launch Fraxtal, its layer 2 blockchain, in February.
“We are currently in the first week of February.” It will be supported on launch day by Etherscan with Fraxscan, and a plethora of projects will make their debut shortly after. According to Kazemian, “it will undoubtedly be among the largest rollup releases of the year.”
The new product will complement Frax’s current line of offerings, which already includes the fully collateralized algorithmic stablecoin FRAX, an automated market maker, a lending platform, an inflation-linked stablecoin FPI, and the liquid staking token frxETH. According to CoinGecko, as of the time of writing, FRAX has a market capitalization of $647 million, making it the seventh-largest stablecoin globally.
The decentralised exchange Curve, which focuses on stablecoins, has previously suggested using Fraxatal for the deployment of its exchange features.
According to Kazemian, Fraxtal will make a big splash when it launches, drawing in at least several hundred million dollars’ worth of cryptocurrency in its first month.
A secondary framework or protocol known as Layer 2 is added to an already-existing blockchain in order to alleviate congestion and speed up transactions. After concerns about Ethereum network congestion surfaced during the 2021 bull market, the race to deploy layer 2s gained momentum.
Rollups technology, which is employed by Fraxtal, is a method of executing transactions off the Ethereum mainnet, batching data, compressing it, and then sending it back to the mainnet. Layer 2 will be powered by Frax’s liquid staking token, frxETH, which also serves as the chain’s gas. In blockchain, “gas” is the cost incurred to complete a transaction.
According to Kazemian, Fraxtal will make a big splash when it launches, drawing in at least several hundred million dollars’ worth of cryptocurrency in its first month.
“We anticipate locking in a total value of at least nine figures in the first month, and over $1 billion in Q1.” If our ideas are well received, that should place us in the top 5 chains shortly after,” Kazemian stated.
Kazemian continued, “Flox, Fraxtal’s blockspace incentives feature, sets it apart from other layer 2s.” The term “blockspace” describes the restricted quantity of data that can be kept on a blockchain in each block. Through the incentive programme and the weekly FXTL point gauge system, users and developers that pay for the blockspace stand and use the chain can receive a consistent yield.