Frax Launches Modular Layer 2 Blockchain

Multifaceted stablecoin protocol Frax Finance has launched Fraxtal, an Ethereum Layer 2 blockchain built using the OP stack.

Frax has announced an airdrop of $FXTL points to veFXS stakers, with a snapshot to be taken on March 6. FXS is down 2% in the past 24 hours.

Fraxtal aims to differentiate itself in the crowded Layer 2 landscape through a novel blockspace incentive system called Flox, offering block-by-block rewards based on the utilization of the chain.

The airdrop for veFXS stakers will be followed by the activation of the Flox mechanism on Mar. 13, after which dapps that have successfully deployed on Fraxtal, as well as users who have bridged assets to the platform, will start earning FXTL points with every block.

Fraxtal users can expect a user-friendly, low-cost, and EVM-equivalent experience. Fraxtal has partnered with prominent Web3 infrastructure projects such as Etherscan, Safe, Chainlink, Axelar Network, and LayerZero Labs.

As part of its commitment to growing the Superchain ecosystem, Fraxtal plans to implement a retroactive public goods funding system (RetroPG) to incentivize infrastructure and dapp builders on the platform.

Frax is a top 20 DeFi protocol with $1.4B in total value locked (TVL), according to DeFiLlama. Launched in late 2020, it is the issuer of the FRAX dollar-pegged stablecoin, although the bulk of its recent growth has been driven by frxETH, its Ethereum liquid staking token.