Founder and CEO of decentralized finance (DeFi) protocol Frax Finance, Sam Kazemian, stated in an interview with CoinDesk that Frax Finance plans to launch the Layer 2 network Fraxtal in February.
Kazemian mentioned that the launch of Fraxtal is currently scheduled for the first week of February, with Ethereum block explorer Etherscan supporting the network through Fraxscan on the first day. He stated, “Frax’s existing product suite includes the fully collateralized algorithmic stablecoin FRAX, lending platform, automated market maker (AMM), stablecoin FPI pegged to inflation index, and liquidity staking token frxETH.” According to CoinGecko, FRAX has a market capitalization of $647 million, making it the seventh largest stablecoin globally.
The frxETH token will power Fraxatal and serve as the gas fee payment token on the chain. Decentralized exchange Curve has already proposed deploying its exchange functionality on Fraxatal.
Kazemian anticipates that the debut of Fraxtal will make a splash, attracting at least hundreds of millions of dollars’ worth of crypto assets in the first month. He added that the Blockspace incentive feature of Fraxtal, named “Flox,” sets it apart from other Layer 2 networks. Blockspace refers to the limited amount of data each block on the blockchain can store, and users and developers utilizing the blockchain and paying for blockspace can earn stable returns through this incentive program and the weekly FXTL score system.