- The DeFi project Frax Finance made it easier for individual customers to transfer money by opening a bridge to Fraxtal, its new Ethereum Layer 2 network.
- The network’s first restricted mainnet launch, which was only accessible to a limited number of partner applications, including infrastructure providers like Safe, Chainlink, Axelar, and LayerZero, preceded this action.
Frax is the developer of the liquid staking derivative Frax Ether and the decentralized Frax stablecoin, which together support a value locked of more than $1 billion.
The Frax team intends to capture a picture of every Frax Shares (veFXS) staker who has their vote escrowed on the Ethereum mainnet today. Later on, these stakeholders will get a payout in the form of Fraxtal (FXTL), which has the potential to evolve into a new cryptocurrency.
Users can deposit assets from Ethereum to Fraxtal, including ETH, CRV, sfxETH, and other currencies, thanks to the expansion.
Fraxtal, which was created as an optimistic rollup compatible with Ethereum through the use of the OP Stack, is expected to join the ranks of other participants in the Optimism Superchain ecosystem, including Base, Mode, Aevo, Lyra, and Zora, all of which are supported by Coinbase. The network intends to function as a platform for decentralized applications, with a focus on decentralized money.
The Frax Protocol uses Fraxswap, the first AMM with time-weighted average market maker orders, to deploy protocol-owned liquidity onchain, grow and contract the supply of stablecoins, and rebalance collateral.
The Frax economy comprises three stablecoins:
FPI: The first stablecoin based on a basket of consumer products (CPI), the Frax Price Index (FPI), has established its own unit of account independent of any national state-denominated currency. FPI has crypto collateralization and is fully backed.
Frax Ether: WETH is replaced in smart contracts by Frax Ether (frxETH & sfrxETH), an LST system and stablecoin based on ETH. Developed with full cryptocurrency collateralization and leveraging the Frax ecosystem.
Frax: The Frax stablecoin is a highly scalable, trustless, and ideologically pure on-chain money that is crypto-collateralized and anchored to the US dollar.
Notable Partnerships
Frax was made available as a service on Ondo Finance in January 2022. Through the agreement, token issuers were able to use $FRAX, which is given by the protocol itself, as liquidity, thereby expanding upon Ondo’s Liquidity-as-a-Service offering.
To provide stability and privacy to Defi, FRAX has teamed up with Sacred Finance. Through Sacred, users will be able to earn yield and lend FRAX in secret thanks to this relationship.
The Decentralised 3 Pool launched on Convex Finance too shortly. This is a triple partnership involving Alchemix (ALCX), Fei Protocol, and Frax. To integrate FRAX and FXS into the Aurora and Near ecosystem, NearPad teamed up with Frax Finance.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
