- The founder of the Frax Finance protocol, Sam Kazemyan, announced the launch date for the Fraxtal L2 network.
- The second layer solution is based on a hybrid technology of optimistic rollups and zero-knowledge proofs.
- With the launch of the L2 network, the team plans to raise more than $1 billion in the first quarter of 2024.
Decentralized finance (DeFi) protocol Frax Finance plans to deploy Fraxtal Layer 2 network in February 2024. This was announced by the founder of the project Sam Kazemyan.
“The estimated launch date is early February.. The Etherscan platform will support Fraxtal from day one. As soon as the L2 protocol is launched, we expect the debut of a large number of projects,” Kazemyan said.
Frax Finance’s L2 solution is based on a hybrid technology of optimistic rollups and zero-knowledge proofs. To pay commissions on the Fraxtal network, the frxETH token will be used. In addition, the developers plan to introduce an incentive program, thanks to which users of the protocol will receive a constant income.
Note that the Frax Finance ecosystem includes the algorithmic stablecoin FRAX, a lending platform, a native token FXS, a stablecoin FPI, as well as a coin for liquid staking frxETH. At the time of writing, FRAX has a market capitalization of $648 million, according to CoinGecko.
TVL Frax Finance also shows strong growth. The amount of funds locked in smart contracts exceeded $1.08 billion at the time of writing, according to DeFi Llama:
The deployment of the L2 protocol is expected to be one of the biggest events of the year, the project founder said:
“We plan to raise more than $1 billion in the first quarter of 2024. If our innovations are well received, Fraxtal could become a top 5 tier 2 solution.”
A number of other projects are also considering creating their own L2 protocol for Ethereum – including using an already existing set of tools.
In 2023, representatives of Gitcoin, Astar Network, Canto, and the Kraken crypto exchange announced the development of a second-level network. The Celo team has delayed the launch of the L2 network until 2024.