DeFi Protocol Frax Finance to Launch Layer 2 Network Fraxtal in February

DeFi Protocol Frax Finance to Launch Layer 2 Network Fraxtal in February

DeFi Protocol Frax Finance to Launch Layer 2 Network Fraxtal in February

Sam Kazemian, founder and CEO of decentralized finance (DeFi) protocol Frax Finance, stated in an interview with CoinDesk that Frax Finance plans to launch the Layer 2 network Fraxtal in February. Kazemian mentioned that the expected launch date for Fraxtal is the first week of February, with support from the Ethereum block explorer Etherscan through Fraxscan on the first day. He stated:

“Frax’s existing product suite includes the algorithmic stablecoin FRAX, which is fully collateralized, lending platforms, automated market makers (AMMs), the stablecoin FPI pegged to the inflation index, and the liquidity staking token frxETH. According to data from CoinGecko, FRAX has a market capitalization of $647 million, making it the seventh-largest stablecoin globally.”

The frxETH token will provide power to Fraxtal and serve as the token for gas fees on the chain. Curve, a decentralized exchange, has already proposed deploying its exchange functionality on Fraxtal.

Kazemian expects Fraxtal’s debut to make a splash, attracting hundreds of millions of dollars worth of crypto assets in the first month. He stated:

“In addition, Fraxtal’s blockspace incentive feature, called ‘Flox,’ sets it apart from other Layer 2 networks. Blockspace refers to the limited amount of data each block on the blockchain can store, and users and developers who use the blockchain and pay for blockspace can earn stable returns through this incentive program and the weekly FXTL scoring system.”