Frax Finance has unveiled an ambitious plan in its newly released singularity roadmap, aiming to escalate the total value locked (TVL) in its layer 2 blockchain, Fraxtal, to a staggering $100 billion by the end of 2026. The current TVL in Fraxtal stands at $13.2 million, showing the scale of growth Frax Finance targets.
Expanding the Ecosystem with Layer 3s
A significant element of this roadmap is the proposal to launch 23 new layer 3 protocols within the next year, alongside introducing new assets such as frxNEAR, frxTIA, and frxMETIS. These assets, along with existing ones like FRAX, sFRAX, and frxETH, will be issued on Fraxtal. Layer 3 protocols are designed to offer decentralized applications a highly customizable and interoperable network, leveraging layer 2 solutions for enhanced scalability.
Boosting FXS Liquidity and Frax Stability
The roadmap also highlights plans to rejuvenate a mechanism aimed at sharing protocol revenue with stakers of its native tokens. Specifically, the proposal suggests turning on the protocol fee switch, directing 50% of the yield to veFXS holders and using the remaining 50% to purchase FXS and other Frax assets. These assets will then be paired in the FXS Liquidity Engine (FLE), aiming to enhance the liquidity of FXS and its associated Frax assets significantly. This strategy not only intends to bolster Frax’s balance sheet but also to increase FXS liquidity.
FXS, the governance and utility token within the Frax ecosystem, plays a crucial role. Holders who lock their FXS tokens receive veFXS, which can be staked on both the Ethereum mainnet and Fraxtal, emphasizing the interconnectedness of the ecosystem.
New Tokenomics for FRAX
Furthermore, the roadmap outlines new tokenomics intended to fully collateralize Frax’s stablecoin, FRAX, one of the leading dollar-pegged cryptocurrencies globally. The plan also aims to enhance yields on staked FRAX (sFRAX). At the time of writing, FXS is trading at $1.35, marking a 2% increase over 24 hours, despite a 14% decline this year.
Frax Finance’s singularity roadmap paints a bold vision for the future, focusing on scalability, liquidity, and stability within its ecosystem. By setting such an ambitious target for TVL and expanding through layer 3 protocols and new asset introductions, Frax Finance is positioning itself as a significant player in the decentralized finance space, aiming for substantial growth and innovation by the end of 2026.
