U.Today - Frax Finance, the cryptocurrency ecosystem behind one of the most important decentralized stablecoins, FRAX, shared the details of its second-layer solution project. It will merge the benefits of Optimistic Rollups and Zero-Knowledge Proofs (ZKPs), two mainstream technologies for Ethereum (ETH) scaling.
Frax Finance will launch L2 on Ethereum (ETH): What do we know about FraxChain?
Frax Finance is developing a second-layer solution on the top of Ethereum (ETH). The upcoming network will use frxETH token for gas payments and employ Optimistic Rollups combined with Zero-Knowledge Proofs (ZKPs). Such statements were made by Frax Finance's Sam Kazemian yesterday, on June 15.The new blockchain that is currently dubbed FraxChain will be a fully EVM-compatible easy-to-code environment for all types of decentralized applications. All assets of Frax Finance ecosystem will be natively available on FraxChain.
frxETH will be used for gas fees on the new network. Users will be able to bridge their assets to it via FraxFerry, FraxChain's decentralized bridge.
Users will also be invited to restake their frxETH synthetic assets as sfrxETH to earn extra yield on their liquidity. As a result, the new blockchain will be an outstanding solution of many issues dangerous for the modern L2 ecosystem:
frxETH will then be redistributed among veFXS holders. The launch of a viable version of FraxChain is scheduled for Q4, 2023.
Frax Shares (FXS) price adds 10% in less than 24 hours
Also, FraxChain will natively support account abstraction (AA) from the very beginning. This is the most anticipated upgrade for all EVM blockchains that can turn every wallet into a decentralized bank.The announcement excited the global Web3 community: the price of Frax Share (FXS), a core asset of Frax Finance's ecosystem, spiked from $4.67 to $5.08.
As by U.Today previously, since December 2022, BNB Chain hosts a native version of Frax Finance's USD-pegged stablecoin FRAX.