Frax Finance's Layer-2 to Launch in February

Sam Kazemian, the founder of Frax Finance, has announced that their Layer-2 solution, Fraxtal, is set to launch in February 2024. He expects it to attract hundreds of millions of USD in deposits upon release.

In an interview with CoinDesk, Sam Kazemian, founder of the DeFi project Frax Finance, revealed that their Layer-2 solution, Fraxtal, will be deployed in February 2024. Initially named Fraxchain, Fraxtal was first announced in mid-2023.

Fraxtal will be a Layer-2 solution built on Ethereum, utilizing rollup technology. Frax's frxETH token will be used to pay transaction fees on this network.

Fraxtal will feature a mechanism called Flox to incentivize users and projects to use block space on Layer-2, allowing them to earn rewards from Flox and the FXTL system on a weekly basis.

The new Layer-2 will complement Frax Finance's existing suite of products, which includes the lending platform Fraxlend, the DEX Fraxswap, the custody solution Fraxferry, governance tokens FXS, liquid staking token frxETH, the algorithmic stablecoin FRAX, and the asset-backed stablecoin FPI.

Leading Ethereum DEX Curve has recently submitted a proposal to deploy on Fraxtal, indicating positive initial reception for the new Layer-2.

Kazemian has high expectations for Fraxtal, stating:

"I estimate that in the first month, we will reach a TVL of nine figures, with an additional $1 billion in the first quarter. Fraxtal will be among the top 5 Layer-2s if our solutions are well received."

The price of Frax Finance's FXS token has seen a slight increase following Kazemian's announcement of the Fraxtal Layer-2 launch date.

1-hour chart of the FXS/USDT pair on Binance as of 02:10 PM, January 18, 2024