The Frax Finance team plans to launch its own L2 blockchain called Fraxchain by the end of the year. The founder of the project, Sam Kazemyan, spoke about this in the Flywheel DeFi podcast.
Yesterday, we released a landmark episode where Sam revealed that Fraxchain would most likely be launched by the end of the year! 👀
Heres a quick recap of what we learned👇 pic.twitter.com/iinwQT3AKH
— FlywheelDeFi.eth (@FlywheelDeFi) June 15, 2023
EVMThe interoperable solution is based on a hybrid technology of Optimistic rollups and zero-knowledge proofs.
According to the developers, such a design will provide Fraxchain with a number of advantages over other rollups:
- faster transaction finalization;
- increased security due to evidence of credibility;
- increased throughput;
- opportunities for decentralization.
The DeFi project is known for issuing three decentralized stablecoins:
- FRAX – pegged to the US dollar;
- Frax Price Index (FPI) – correlated with the consumer price index of the United States;
- FraxEther (frxETH) – introduces Ethereum (ETH) for use in smart contracts.
The protocol also released the Frax Share (FXS) governance token. It is assumed that all assets from the moment of launch will become available on Fraxchain. Through the Fraxferry cross-chain solution, coins can be transferred to a number of other blockchains.
The ecosystem of the project includes AMM– the Fraxswap platform and a decentralized lending market in Fraxlend’s own stablecoins.
The total value of assets locked in the protocol is $731 million (DeFi Llama). At its peak in March 2022, the amount exceeded $2.34 billion.
At the time of writing, the price of FXS is up 6.4% in the last 24 hours, although it has lost over 15% over the week. The token is trading at $5, almost 90% below its January 2022 high of $42.8.
The capitalization of FRAX slightly exceeds $1 billion. The coin ranks seventh in this indicator among stablecoins (CoinGecko). In February, the DeFi project community decided to phase out FRAX’s algorithmic provisioning to its full redundancy.
The founder of Frax Finance expects the launch of Fraxchain to generate “millions of dollars” in revenue for the protocol. Basically, the forecast is related to the potential expansion of the use of frxETH – the “stable coin” will be used to pay for gas in the L2 network and can bring some of the value from Ethereum to it.
Recall that the staking version of sfrxETH from the protocol became the first collateral asset for the crvUSD stablecoin borrowing mechanism on DEX Curve Finance.
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