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Frax Finance Reveals Ambitious Roadmap for Growth
Frax Finance, a decentralized finance (DeFi) protocol, has unveiled an ambitious roadmap to boost the total value of crypto assets locked in its layer 2 blockchain to $100 billion by the end of 2026. Currently, the total value locked (TVL) in Fraxtal stands at $13.2 million.
Key Points from the Roadmap:
- Launch of 23 layer 3 protocols within a year
- Introduction of new assets like frxNEAR, frxTIA, and frxMETIS
- Issuance of both existing (FRAX, sFRAX, frxETH) and new assets on the Fraxtal blockchain
- Reintroduction of a mechanism to share protocol revenue with stakers of native tokens
Enhancing Frax’s Ecosystem
Layer 3 protocols are vital for providing decentralized applications with a customizable and interoperable network on top of layer 2 scaling solutions. The roadmap also includes plans to fully collateralize Frax’s stablecoin, FRAX, and improve yields on staked FRAX (sFRAX).
Revenue Sharing Proposal
Founder Sam Kazemian proposed turning on the protocol fee switch, with 50% of the yield going to veFXS and the other 50% used to purchase FXS and other Frax assets for pairing in the FXS Liquidity Engine (FLE). This strategy aims to bolster Frax’s balance sheet and enhance liquidity for FXS and its paired assets.
Market Performance and DeFi Sector Growth
At the time of writing, FXS was trading at $1.35, showing a 2% gain in the last 24 hours but a 14% decline since the start of the year. The DeFi sector is witnessing a surge, with total value locked (TVL) on DeFi blockchains approaching $100 billion.
Recent Trends in DeFi
The recent rise in TVL can be linked to the Bitcoin rally, fueled by the launch of spot bitcoin exchange-traded funds (ETFs) in the US. DeFi deposits have seen significant growth, with daily trading volumes on DeFi protocols reaching new highs.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
