Frax Finance, a decentralized finance (DeFi) protocol with one of the world's largest stablecoin holdings, is considering deploying its Layer 2 blockchain, Fraxtal, in February, CEO and founder Sam Kazemian says. he told CoinDesk in an interview.
“The current timeline is the first week of February. Etherscan will support Fraxscan from day one, with a huge number of projects debuting soon after launch. It is definitely one of the biggest rollup releases of the year. “It will be,” Kazemian said.
This new product will be added to Frax's existing product suite consisting of FRAX, a fully collateralized algorithmic stablecoin, lending platform, automated market maker, inflation-linked stablecoin, FPI, and liquidity staking token frxETH. become. According to CoinGecko, at the time of writing, FRAX has a market capitalization of $647 million, making it the seventh largest stablecoin in the world.
Curve, a decentralized exchange focused on decentralized stablecoins, has already proposed rolling out its exchange functionality to Fraxatal.
Layer 2 is a secondary framework or protocol built on top of an existing blockchain to address bottlenecks and improve transaction speeds. The race to launch Layer 2 gained momentum after congestion issues with the Ethereum network surfaced during the 2021 bull market.
Fraxtal uses rollup technology to execute transactions from the Ethereum mainnet, batch processing and compressing the data, and sending it back to the mainnet. Frax’s liquid staking token frxETH powers Layer 2 and acts as the gas for the chain. Gas in blockchain refers to fees paid to perform transactions.
Kazemian expects Fraxtal to have an explosive debut, attracting at least hundreds of millions of dollars worth of crypto assets in its first month.
“We expect to secure at least a nine-figure total in the first month, and over $1 billion in the first quarter. If our innovation is well-received, we will quickly move into the top five chains thereafter. “It should be,” Kazemian said.
Kazemian added that Fraxtal's blockspace incentive feature called Flox makes it stand out among other Layer 2s. Blockspace refers to the limited amount of data that can be stored in each block on a blockchain. Users and developers who use the chain and pay for block space can earn a certain amount of revenue through an incentive program and a weekly FXTL points gauge system.