Frax’s singularity street map units a goal of $100 billion in TVL for its layer 2 Fraxtal and plans to launch 23 new layer 3s.
The proposal requires reviving the few swap mechanisms to spice up liquidity for the FXS governance token.
Decentralized finance (DeFi) protocol Frax Finance launched a singularity street map on Friday to spice up the entire greenback worth of crypto belongings locked in its layer 2 blockchain Fraxtal to $100 billion by the top of 2026.
As of the time of writing, the so-called complete worth locked (TVL) in Fraxtal was $13.2 million, in response to knowledge tracked by DefiLama.
The street map proposed launching 23 layer 3s inside a 12 months and new belongings like frxNEAR, frxTIA and frxMETIS. The present belongings, FRAX, sFRAX, frxETH, and the brand new ones can be issued on Fraxtal going ahead, the proposal floated by founder Sam Kazemian and different contributors added.
Layer 3 protocols present decentralized purposes with a extremely customizable and interoperable community constructed on high of layer 2 scaling options.
Kazemian additionally known as for reviving a mechanism to share the protocol income with stakers of its native tokens.
“We suggest that the protocol payment swap be turned again on, with 50% of the yield flowing to veFXS and the opposite 50% used to purchase FXS and different Frax belongings to pair within the FXS Liquidity Engine (FLE),” the proposal stated. “FLE will permit Frax to proceed constructing its steadiness sheet whereas considerably growing the liquidity of FXS and its paired Frax belongings.”
FXS is the governance and utility token of the Frax ecosystem. FXS holders who lock their tokens obtain veFXS, which might be staked on the Ethereum mainnet and Fraxtal.
Apart from, the plan particulars how new tokenomics will absolutely collateralize Frax’s stablecoin FRAX, one of many high 10 dollar-pegged cryptocurrencies on this planet, and increase yields on staked FRAX (sFRAX).
FXS modified palms at $1.35 at press time, representing a 2% achieve on a 24-hour foundation. The cryptocurrency has declined 14% this 12 months, underperforming the CoinDesk 20 Index, which has rallied 41%.
