Frax Finance to Launch Layer 2 Blockchain Fraxtal in February

According to CoinDesk, decentralized finance (DeFi) protocol Frax Finance, which operates one of the world's largest stablecoins, plans to launch its layer 2 blockchain, Fraxtal, in February. CEO and founder Sam Kazemian revealed that Etherscan will support Fraxtal on day one with Fraxscan, and numerous projects will debut soon after the launch. Frax Finance's existing product suite includes FRAX, a fully collateralized algorithmic stablecoin, a lending platform, an automated market maker, an inflation-linked stablecoin, FPI, and the liquid staking token frxETH. At the time of writing, FRAX has a market cap of $647 million, making it the seventh-largest stablecoin globally, according to CoinGecko. The decentralized stablecoin-focused decentralized exchange Curve has proposed deploying its exchange functionalities on Fraxtal. Layer 2 is a secondary framework or protocol built on top of an existing blockchain to address bottlenecks and improve transaction speed. Fraxtal will utilize rollups technology, which executes transactions off the Ethereum mainnet, batches the data, compresses it, and sends it back to the mainnet. Frax's liquid staking token frxETH will power layer 2 and act as gas for the chain. Kazemian anticipates Fraxtal will attract at least several hundred million dollars worth of crypto assets in its first month. Kazemian also highlighted Fraxtal's blockspace incentives feature, called Flox, which sets it apart from other layer 2s. Users and developers using the chain and paying for blockspace can earn a constant yield through the incentive program and the weekly FXTL point gauge system.