The ambitious singularity plan of Frax Finance is to lock in more value overall on its layer 2 blockchain. By 2026, Fraxtal wants to reach $100 billion. The strategy calls for 23 new layer 3 releases in addition to the introduction of assets like frxNEAR, frxTIA, and frxMETIS.
The proposal calls for the revival of a system for distributing protocol income to holders of the native FXS tokens. It suggests splitting the dividend in half, with 50% going to veFXS holders and the other 50% going to FXS and other Frax assets purchased for pairing in the FXS Liquidity Engine ****. As it builds Frax’s balance sheet, the FLE aims to increase liquidity for FXS and its linked assets.
Fraxtal’s current TVL is $13.2 million, according to data from DefiLama. The road map outlines future plans to release new assets on Fraxtal in addition to those that are presently available, such as FRAX, sFRAX, and frxETH.
To fully collateralize Frax’s stablecoin FRAX, one of the top ten dollar-pegged cryptocurrencycurrencies, and improve returns on staked FRAX (sFRAX), the strategy proposes novel tokenomics.
Frax Finance’s comprehensive road map demonstrates its commitment to expanding its Layer 2 ecosystem, providing new services, rewarding token holders, and strengthening the stability of its stablecoin.
Read also: Frax Finance Considers Protocol Revenue Sharing Plan for veFXS Stakers