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 change 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 full greenback worth of crypto property locked in its layer 2 blockchain Fraxtal to $100 billion by the top of 2026.
As of the time of writing, the so-called whole worth locked (TVL) in Fraxtal was $13.2 million, based on information tracked by DefiLama.
The street map proposed launching 23 layer 3s inside a yr and new property like frxNEAR, frxTIA and frxMETIS. The prevailing property, FRAX, sFRAX, frxETH, and the brand new ones shall be issued on Fraxtal going ahead, the proposal floated by founder Sam Kazemian and different contributors added.
Layer 3 protocols present decentralized functions 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 change be turned again on, with 50% of the yield flowing to veFXS and the opposite 50% used to purchase FXS and different Frax property to pair within the FXS Liquidity Engine (FLE),” the proposal mentioned. “FLE will permit Frax to proceed constructing its stability sheet whereas considerably rising the liquidity of FXS and its paired Frax property.”
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.
In addition to, the plan particulars how new tokenomics will absolutely collateralize Frax’s stablecoin FRAX, one of many high 10 dollar-pegged cryptocurrencies on the earth, and enhance 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 yr, underperforming the CoinDesk 20 Index, which has rallied 41%.