Frax Finance, a decentralized finance (DeFi) protocol, unveiled its singularity roadmap, targeting to increase the total value of assets locked in its layer 2 blockchain Fraxtal to $100 billion by the end of 2026. Currently, Fraxtal holds a total value locked (TVL) of $13.2 million, as per DefiLama's data.
Fraxtal Roadmap Unveiled: 23 Layer 3s Launching in a Year, with New and Existing Assets to Be Listed
The roadmap proposes the launch of 23 layer 3s within a year, along with the introduction of new assets such as frxNEAR, frxTIA, and frxMETIS. Founder Sam Kazemian and other contributors suggest that both existing assets like FRAX, sFRAX, frxETH, and the new assets will be issued on Fraxtal going forward.
Layer 3 protocols offer decentralized applications a customizable and interoperable network atop layer 2 scaling solutions.
Sam Kazemian Proposes VeFXS Income Allocation Mechanism to Enhance Frax Ecosystem's Asset Liquidity
Kazemian advocates for reinstating a mechanism to distribute protocol revenue with stakers of its native tokens. The proposal suggests allocating 50% of the yield to veFXS and using the remaining 50% to purchase FXS and other Frax assets for pairing in the FXS Liquidity Engine (FLE). This move aims to bolster Frax's balance sheet while enhancing the liquidity of FXS and its paired Frax assets.
FXS serves as the governance and utility token within the Frax ecosystem. Token holders who lock their FXS tokens receive veFXS, which can be staked on both the Ethereum mainnet and Fraxtal.
New Tokenomics Plan Overview: Enhancing Stability of FRAX, Boosting Yields for stFAX, and Analysis of FXS Trading Price Trends
The plan outlines how new tokenomics will fully collateralize Frax's stablecoin FRAX and elevate yields on staked FRAX (sFRAX).
At the time of reporting, FXS is trading at $1.35, marking a 2% increase over the past 24 hours. However, it has witnessed a 14% decline this year, underperforming the CoinDesk 20 Index, which surged by 41%.