- March 23, 2024
- Posted by: [email protected]
- Category:
Frax Finance, a prominent player in the decentralized finance (DeFi) landscape, has embarked on an ambitious journey outlined in a comprehensive roadmap. The primary objective? To propel the total dollar value of crypto assets locked within its layer 2 blockchain network to an astounding $100 billion by the culmination of 2026. As of the latest data from DefiLama, the current total value locked (TVL) in Fraxtal stands at a comparatively modest $13.2 million.
The roadmap delineates an array of strategic initiatives poised to catapult Frax Finance towards this audacious milestone. Among the pivotal strategies is the launch of 23 layer 3 protocols within the span of a year. These protocols are pivotal as they provide decentralized applications with a highly customizable and interoperable network, meticulously crafted atop layer 2 scaling solutions. Founder Sam Kazemian and a cohort of contributors have spearheaded efforts to integrate a diverse array of assets into the Fraxtal blockchain, including novel offerings such as frxNEAR, frxTIA, and frxMETIS, alongside the existing assets like FRAX, sFRAX, and frxETH.
Furthermore, Kazemian has advocated for the reinstatement of a mechanism designed to share protocol revenue with stakers of its native tokens. This proposal entails the activation of the protocol fee switch, with 50% of the generated yield allocated to veFXS, a derivative of the governance and utility token FXS. The remaining 50% would be utilized to procure FXS and other Frax assets, strategically paired within the FXS Liquidity Engine (FLE). Such a strategic maneuver aims not only to fortify Frax’s balance sheet but also to significantly enhance the liquidity of FXS and its associated Frax assets.
The roadmap also envisions the full collateralization of Frax’s stablecoin, FRAX, which presently ranks among the top 10 dollar-pegged cryptocurrencies globally. Additionally, it outlines plans to optimize yields on staked FRAX (sFRAX). Presently, FXS is trading at $1.35, marking a 2% gain over the past 24 hours, though it has experienced a 14% decline since the beginning of the year.
Meanwhile, the DeFi sector is experiencing a renaissance of sorts, with the total value of tokens (TVL) deposited on DeFi-focused blockchains soaring to an impressive $100 billion. This recent surge can largely be attributed to the resounding rally in Bitcoin, spurred by the introduction of spot bitcoin exchange-traded funds (ETFs) in the United States. Daily trading volumes on DeFi protocols have witnessed a meteoric rise, reaching as high as $7.3 billion in early January, a figure unseen since March 2023.
