Frax Finance New L2: Full Fraxtal Analysis

Author: Francesco, Web3 Observer Translation: Shan Ouba, Golden Finance

After months of waiting, Frax Finance has finally launched their own blockchain, Fraxtal.

This is a testament to their resilience and vision to revolutionize DeFi: Following Luna’s collapse, Frax transitions from algorithmic stablecoin protocol An overhaul was conducted, leading to the creation of new primitives including Liquid Stake (frxETH), bonds, real-world assets, and more.

Fraxtal is the culmination of their vision: A modular blockchain with a unique scaling roadmap and incentives for user growth and Incentives for development.

Fraxtal is an EVM-compatible rollup built on the OP Bedrock stack that guarantees full EVM equivalence, Ethereum consistency and security, and promotes dApps deploy.

The name Fraxtal comes from "fractal". In mathematics, a fractal is a geometric shape that containsdetailed structure at any small scale, often having fractal dimensions thatstrictly exceedthe topological dimensions.

The particularity of fractals is that they are infinitely complex and their patterns repeat forever. Furthermore, each part of the fractal, no matter how much you magnify it, looks very similar to the entire image.

This philosophy is reflected in Fraxtal’s strategic vision.

As Sam has mentioned repeatedly, Fraxtal is a technical paper driven chain and is not intended to be a standalone application chain. Instead,Fraxtal hopes to be a modular L2 Rollup that inspires others to build on top of it.

Currently, there are two mainstream views on the development of the future architecture of the blockchain: monolithic and modular. The modular perspective believes that key components of the blockchain stack (such as verification, execution, data availability, etc.) can be separated or combined to suit specific use cases, thereby improving the efficiency of the blockchain network.

This article provides a brief introduction to Fraxtal and how it incentivizes users to build on its L2 platform, as well as the role of FXS in this new ecosystem.

Introduction to Fraxtal

Fraxtal benefits from the support of Frax Finance, the largest financial institution in DeFi. One of the most resilient protocols, covering almost all DeFi primitives.

This gives Fraxtal a strong network and utility from the start, with an infrastructure that multiple users can leverage.

Therefore, Fraxtal's goal can be viewed as a universal computing chain, with a roadmap that includes data availability protocols, more L1s, and other blockchain components. Future integration.

One ​​such integration is Eclipse, a protocol that uses the Solana virtual machine but is settled on Ethereum. As a modular rollup, Fraxtal will provide multiple infrastructure and middleware components “for other chains and networks to consume, connect to, deploy L3 and build on top of it.”

For example, Fraxtal uses an in-house data availability module developed by the Frax team.

Fraxtal is expected to be released in the second week of March and will have a buffer period to allow developers to release dApps, which reflects their robust approach to ensuring that everything The setup is perfect.

This is often the approach of Frax, who prefer to focus on long-term goals rather than short-term vision. As Frax founder Sam puts it, this approach involves “seeing where the industry is going and making sure you can create the most value there, with a long-term growth orientation”. **

This also means not following the crowd and maintaining a core focus on the long-term vision of the protocol.

To achieve this goal and incentivize development, Fraxtal has chosen a different path than many of today's L2 releases.

Rather than lead Fraxtal with the promise of an airdrop, the Frax team launched FLOX, a series of blocks targeted at users and developers using the Fraxtal chain Space incentives.

FLOX is a system where users of on-chain transactions and developers who deploy popular smart contracts can Customization) Earn FLOX Points.

Initially, epochs will be set to weekly, but their length can be further customized to avoid mechanical games and get a more granular period.

So far, gas refunds have been relatively ineffective at attracting users because they tend to be one-offs rather than long-term, and they have a negative impact on the project's performance. Financial contributions are often minimal.

The same is true for airdrops. They are one-time stimulation and cannot help user stickiness and user retention.

So, Fraxtal created FLOX Points, which can be thought of as a "continuous airdrop" that rewards users for real usage.

In order to prevent malicious arbitrageurs or users from using their own contracts to manipulate the system, Fraxtal has introduced 3 mitigation mechanisms:

1. < p style="text-align: left;">Block space usage: How much block space does this contract contribute? How much fees does it create for the Fraxtal network?

2. Contract ranking: Similar to Google’s ranking of domain name pages, this mechanism will consider the popularity of the contract in the Fraxtal ecosystem. Popularity and ranking. This ensures that a single user cannot manipulate the system and assesses how many users are effectively using the contract and how much each user is depositing and spending.

3. Random block sampling: Similar to data availability sampling, Fraxtal uses random block sampling to ensure that assets are available at any time. Availability.

Used together, these mechanisms will reduce Sybill attacks and prioritize organic demand sources and fair reward mechanisms.

This approach is more efficient than "gas return" or "orderer fee sharing" because the project spends $1 of gas on its contract The rewards generated are far greater than any cost-share program could ever offer.

In summary, FLOX can be viewed as a continuous incentive for usage and consumed block space. FLOX rewards will be represented by the token symbol FXTL and will be tokenized "within 12 months of the Fraxtal chain going live."

Currently, the team has not yet decided whether FXTL points will be tokenized as the chain's separate staking token (FXTL) or converted to FXS at a specific rate tokens (or both)."

FLOX rewards will go live on March 13th and will airdrop FLOX points to veFXS stakers.

Now we move on to the next question: What will happen to FXS now?

The role of FXS in the Fraxtal ecosystem

As for the future of FXS, there is no need to worry; FXS will still play a central role in the Fraxtal ecosystem. In effect, FXS will become Fraxtal’s native token, accumulate network value, and serve as a long-term staking token—the driving wheel of multiple incentive mechanisms.

Nonetheless, it is worth noting that gas fees on Fraxtal will be paid for through frxETH.

At the same time, Fraxtal will also bring additional practicality to veFXS. Users are now able to stake veFXS on Fraxtal while maintaining a balance consistent with the Ethereum mainnet, which will be used to earn FLOX points, participate in governance and other activities.

More information about Fraxtal

In addition, Fraxtal also plans to launch a Frax version of Bitcoin, frxBTC. How does frxBTC benefit? Because Frax’s goal is to become the main issuer of the most important economic units (such as USDT, ETH) and is committed to becoming a universal chain. Therefore, Bitcoin represents another huge potential market in addition to the markets Frax already covers.