Frax Finance, creators of one of the most innovative decentralized stablecoins and DeFi-focused stablecoin infrastructure, has unveiled its plans to roll out an Ethereum Layer 2 blockchain, aptly named Fraxchain.
The objective is simple but ambitious: to cultivate a smart contract platform with an unwavering focus on decentralized finance.
Frax Protocol: A Trio of Stablecoins and Integrated Subprotocols Frax Finance announces Ethereum Layer 2 (L2) intentions.
Frax Protocol is a groundbreaking development in the crypto industry that issues three decentralized stablecoins: FRAX, a USD-pegged asset; Frax Price Index (FPI) stablecoin, which links its value to a basket of consumer goods, creating a new unit of account independent of national currencies; and FraxEther (frxETH), a stablecoin pegged to ETH, designed to replace WETH in smart contracts. The protocol also includes three subprotocols: Fraxlend, Fraxswap, and Fraxferry. Frax Share (FXS) is the primary governance token, while FPIS is specific to FPI. The community can propose rewards for strategies that integrate Frax-based stablecoins through a Gauge Rewards System. Frax Finance announces Ethereum Layer 2 (L2) intentions.
Frax Finance Sets Sights On Layer 2 With Fraxchain
Fraxchain, created by the team behind the Frax stablecoin, aims to enhance the position of decentralized finance in the blockchain industry. According to Sam Kazemian, the founder of Frax, Fraxchain represents the pinnacle of the Frax ecosystem and reflects its popularity and adoption.
A Glimpse into the Fraxchain Framework
Fraxchain, a new network governed by holders of Frax Shares (FXS) tokens, is set to be released by the end of this year. The network will use the Frax stablecoin and Frax Ether for transaction fees, and fees collected could be burned or returned to Ethereum mainnet stakers. Fraxchain will operate using a Layer 2 rollup model, with state roots published on Ethereum mainnet for security. Decentralized sequencers will order transactions and can be operated by any entity that secures a governance vote.
“Fraxchain proposes a solution where sequencer roles can be auctioned off and rotated, creating a decentralized sequencer base. If a sequencer is forced to shut down, Fraxchain would allow the next elected sequencer to pick up from where the previous one left off,” he explained.
Fraxchain: By the Numbers
Frax's ecosystem has made a significant impact on the world of crypto, with a total supply of over $1.23 billion and a market cap exceeding $371 million for Frax Shares (FXS). The Frax stablecoin is listed on major exchanges and integrated into numerous DeFi platforms, while the FXS token is used for governance decisions. The launch of Fraxchain strengthens Frax Finance's position in the DeFi world, and its progress will be monitored closely.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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