Frax on the way to L2 – Frax Finance is a protocol launched in December 2020 on the blockchain Ethereum. In practice, this is the origin of the eponymous stablecoin, issued through the collateralisation of crypto-assets. From now on, the protocol turns to layers 2.
Frax Finance: a multi-hat protocol
Frax Finance is a protocol that issues several decentralized stablecoins on Ethereum. It currently issues three stablecoins: FRAX, FPI and frxETH.
FRAX is an asset backed by the US dollar. For his part, the Frax Price Index (REIT) is the first stablecoin backed by a basket of consumer goods, thus creating its own unit of account independent of any fiat currency. Finally, FraxEther (frxETH), backed by ETH, serves as a substitute for WETH in smart contracts.
Frax also offers a unique staking model with sfrxETHwhich accrues returns for frxETH validators.
According to data compiled by Blockworks, frxETH has been the fastest growing liquid staking product since its launch. This one went from 0 to 378 million dollars in less than eight months.
>> Binance offers you 1 chance to win 1 bitcoin! Register quickly to click on the button (commercial link) <<
Fraxchain: the layer 2 developed by Frax
June 15, Sam Kazemianthe founder of Frax Finance was welcomed into the Flywheel DeFi Podcast. On this occasion, he revealed Frax Finance’s desire to migrate to its own chain called Fraxchain.
In practice, the Fraxchain will be Frax Finance’s own Layer 2. So the solution will be a hybrid rollup, combining both an optimistic rollup architecture (used by Optimism and Arbitrum) and zero-knowledge proofs (zk-proof). Additionally, this new L2 will use frxETH as a gas token, providing more utility to the token.
Sam Kazemian plans to launch the FraxChain for the end of 2023. Although no specific date has been announced.
Frax is not the only protocol to bet on Layers 2. Thus, the blockchain Polygon recently unveiled a major evolution with Polygon 2.0. It would be a network based on zero-knowledge proofs, forming a second layer chain.
Do you dream of adding 1 round bitcoin to your wallet? Register now on Binance and click on the button to try to win 1 BTC (commercial link)