In an exclusive interview with CoinDesk, Sam Kazemian, CEO and founder of Frax Finance, revealed that the decentralized finance (DeFi) protocol is about to launch its long-awaited layer 2, Fraxtal, scheduled to debut in the first week of February.
Frax Finance, recognized as the home of one of the world’s largest stablecoins, FRAX, with a current market capitalization of $647 million, seeks to address the congestion challenges of the Ethereum network and improve the speed of transactions with Fraxtal.
This new development adds to the existing product suite, which includes FRAX, a fully collateralized algorithmic stablecoin, a lending platform, an automated market maker, an inflation-linked stablecoin (FPI), and the liquid staking token frxETH.
Fraxtal will use rollup technology, executing transactions outside the Ethereum mainnet and then sending them back after compressing the data.
frxETH Liquid Staking Token Will Play Critical Role as Gas for Layer 2 Chain
This implementation becomes crucial amidst the Ethereum network congestion issues that arose during the 2021 bull market.
Sam Kazemian has high expectations for the launch of Fraxtal, anticipating attracting at least several hundred million dollars in crypto assets within the first month.
Additionally, it projects a total value locked (TVL) of at least nine digits in the first month and more than a billion for the first quarter, which could position Fraxtal among the top five blockchains.
What sets Fraxtal apart is its block space incentive feature, called Flox.
This system allows users and developers to earn a constant return through the incentive program and the weekly FXTL points system, by using and paying for the limited space in each block of the chain.
News of Fraxtal’s launch has already generated interest, with decentralized exchange Curve proposing to deploy its exchange functionalities on Fraxtal, suggesting possible collaborations and integration with other projects.
Fraxtal’s upcoming launch promises to be a significant milestone in the DeFi space, addressing scalability issues and introducing unique features that could appeal to investors and developers alike.
With an experienced team and a solid track record, Frax Finance is undoubtedly positioned to make waves in the decentralized finance industry in the coming months.