Frax Finance, a key player in decentralized finance (DeFi), has initiated its Ethereum Layer 2 network, named Fraxtal. This new mainnet, which currently supports select partner applications, has commenced operations, marking a significant development in Ethereum’s scalability and DeFi ecosystem.
Fraxtal’s Operational Dynamics
Fraxtal, an Ethereum-compatible Optimistic Rollup, was crafted using the OP Stack and forms an integral part of the Optimism Superchain network. This network, inclusive of the Base network backed by Coinbase, is focused on improving transaction efficiency and reducing costs.
At its inception, Fraxtal hosts a select circle comprising decentralized infrastructure services such as Safe, Chainlink Oracles, Axelar, and LayerZero bridges. The network, which is poised to open up to a broader set of investors shortly, is strategically aimed at serving as a robust platform for decentralized applications, particularly in the DeFi sector.
Frax Finance is renowned for issuing the decentralized stablecoin Frax and Frax Ether, boasting a valuation exceeding 1 billion dollars. This venture is closely associated with Frax Shares (FXS) tokens, which are central to its operational model.
Snapshot and Token Dynamics
A crucial snapshot is scheduled for March 6th, which will play a decisive role in the dispensation of Fraxtal (FXTL) points to Frax Shares (FXS) token holders based on a voting mechanism. However, Frax has not disclosed whether these points will be convertible into a new token in the future.
In terms of market performance, Frax has witnessed a marginal 0.15% rise with its price hovering just below $0.9988, slightly off the $1 peg typical of stablecoins. The market value mirrors this nominal increase, positioning itself just below $650 million. Despite these developments, Frax has seen a 15.79% decrease in trading volume in the past 24 hours, totaling $10 million, indicating a dampening of investor interest post-announcement.