Frax, a major player in the world of decentralized finance (DeFi), recently announced “Fractal”, its new second-layer infrastructure project. This ambitious protocol will be deployed on the OP Stack and will join forces with Base and Optimism to enhance Ethereum’s scalability. As part of this initiative, Frax also revealed the creation of the FXTL token, specifically designed for this new chain, as well as the launch of an airdrop for which it is still possible to become eligible.
What we know about Frax’s new layer 2
In a post on the X network on Thursday, February 8, 2024, Frax announced the launch of its own second-layer (L2) infrastructure on Ethereum, dubbed “Fractal”, accompanied by the creation and airdrop of its new token, the FXTL.
Frax, a decentralized finance protocol (DeFi), issues several decentralized stablecoins, such as FRAX, backed by the dollar, FPI, a token designed to track inflation, and frxETH, backed by Ether. It comprises 3 sub-protocols: Fraxlend, for lending and borrowing; Fraxswap, a decentralized exchange platform (DEX), and Fraxferry, a bridge serving 14 different blockchains.
Currently, Frax ranks 21st among DeFi applications, with over $1 billion in total locked value (TVL). The news does not appear to have impacted FXS’s share price or the protocol’s TVL.
It’s time for the Fraxtal launch thread! The most important and consequential release since the dawn of Frax itself in 2020. Fraxtal testnet & mainnet are here for select launch partners! https://t.co/O8o2WbQ1C7 will be the hub of Fraxtal documentation, L2 bridge UI, & other… pic.twitter.com/UEQwbu8TfI
– Frax Finance ¤⛓️¤ (@fraxfinance) February 8, 2024
Fractal will be an Optimistic Rollup deployed on the OP Stack, and will join layers 2 Base and Optimism (OP) to complete the Superchain. This blockchain network aims to improve Ethereum’s scalability.
Fractal will be launched in collaboration with key infrastructure providers such as Chainlink (LINK), as the oracle network, as well as Axelar Network (AXL) and LayerZero to ensure chain interoperability.
The FXTL token at the heart of the Fractal blockchain
In its release, Frax introduces “Floxs”, a reward mechanism unique to Fractal, offering FXTL tokens to participants for every action performed on its network, including users and the dApps themselves. This system aims to make Fractal more attractive and rewarding than its competitors.
Flox reward mechanism diagram
According to Frax, an airdrop of FXTL tokens will be carried out for the benefit of holders of veFXS, the liquid token of the FXS governance token, depending on their balance as at 00:59 on March 7, 2024. The week following this airdrop, on March 13, the Flox mechanism will be activated, officially marking the start of trading on the blockchain.
Frax has also indicated that decentralized applications deployed in the 4 weeks preceding the blockchain’s launch, and users who have transferred assets to Fractal, will begin accumulating FXTL upon their first use of the chain.
To conclude his announcement, Frax promised to soon share more details on how it intends to become a modular system capable of linking different ecosystems, including those of Ethereum, Solana, the Cosmos Hub blockchains, Polkadot, as well as some L2s on Bitcoin.
