Frax Finance Plans to Launch Layer 2 Chain "Fraxtal" in February

Stablecoin protocol Frax Finance's founder, Sam Kazemian, stated in an interview that the company is planning to launch the Layer 2 blockchain Fraxtal in February. He mentioned, “According to the current planned timeline, it should be launched in the first week of February. Etherscan will support it on the first day through Fraxscan, and a significant number of projects will be making their debut shortly after its release.”

The new product will support Frax's existing product suite, including FRAX (a fully-collateralized algorithmic stablecoin), lending platform, automated market maker, inflationary stablecoin FPI, and the staking token frxETH.

Fraxtal will utilize Rollup technology, which executes transactions on the Ethereum mainnet, processes data in batches, compresses data, and then sends it back to the mainnet. The Frax staking token, frxETH, will provide incentives for Layer 2 and act as the gas fee for its blockchain.

According to CoinGecko, FRAX has a market capitalization of $647 million, making it the seventh-largest stablecoin globally.