Frax’s singularity roadmap 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 switching mechanisms to extend liquidity for the FXS governance token.
Decentralized finance protocol (DeFi) Frax Finance on Friday launched a singularity roadmap to extend the entire greenback worth of crypto property locked within the layer 2 blockchain Fraxtal to $100 billion by the tip of 2026.
On the time of writing, the so-called whole worth locked (TVL) in Fraxtal was $13.2 million, in response to information tracked by DefiLama.
The roadmap proposed launching 23 Layer 3s inside a 12 months and new property reminiscent of frxNEAR, frxTIA and frxMETIS. The prevailing property, FRAX, sFRAX, frxETH, and the brand new ones might be issued on Fraxtal sooner or later, in response to the proposal from 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 protocol revenues with stakers of its personal tokens.
“We suggest that the protocol price change be turned again on, with 50% of the proceeds flowing to veFXS and the opposite 50% used to buy FXS and different Frax property to hyperlink into the FXS Liquidity Engine (FLE)” , in response to the proposal. . “FLE will allow Frax to proceed constructing its steadiness sheet whereas considerably growing the liquidity of FXS and the related Frax property.”
FXS is the governance and utility token of the Frax ecosystem. FXS holders who lock their tokens will obtain veFXS, which might be staked on the Ethereum mainnet and Fraxtal.
Moreover, the plan particulars how new tokenomics will totally collateralize Frax’s stablecoin FRAX, one of many high 10 dollar-pegged cryptocurrencies on the planet, and enhance yields on staked FRAX (sFRAX).
FXS was altering fingers at $1.35 on the time of writing, representing a 2% achieve on a 24-hour foundation. The cryptocurrency is down 14% this 12 months, underperforming the CoinDesk 20 Index, which is up 41%.