frax

Fraxtal Has Officially Launched 🚀

We finally got a full look at the docs for the upcoming full launch of @fraxfinance's modular L2, Fraxtal. There's lots unpack, so we've gone through all the information to break it down 🤝

Here's What You Need To Know 👀

What is Fraxtal 🧐

Fraxtal is an EVM equivalent modular rollup using the OP stack as its smart contract & execution environment. Its consensus, settlement, execution & DA are broken into separate modules ⚙️

Enabling scalability, future innovation & flexibility 🦾

1/ Gas, frxETH + Monetary Premium 

Fraxtal uses Frax's LST frxETH as its gas token, It is the first of its kind to have this vertically integrated setup and completes the demand flywheel

Users can choose to either earn staking rewards, provide liquidity or pay gas on Fraxtal

2/ Gas, frxETH + Monetary Premium

The more demand there is for the latter, the smaller the pool of sfrxETH stakers & the higher the yield, possibly 2-3x that of stETH/rETH

Users will need to buy, bridge & hold frxETH on Fraxtal leading to an organic monetary premium for the LSD

Blockspace Incentives (FLOX)

FLOX is a novel incentive structure for Fraxtal that rewards users, developers & applications for spending gas & interacting w/ smart contracts on the network 💰

Every other network, the biggest apps & power users earn zero revenue for spending gas

2/ Blockspace Incentives (FLOX)

The FLOX algorithm tracks & rewards both sides of a transaction, the gas payers & spenders 

It does this by "calculating a transaction trace of gas used by contracts & applying a second algorithm to rank contract importance and additional criteria

The goal with Blockspace incentives is to reward users & contracts w/ more than $1 worth of rewards for every equivalent dollar of gas spent ⛽️

Frax does this by assigning FXTL points through its Fraxtal Point System. These points accumulate on a 7 day period (1 epoch)

In the future, FXTL points will be tokenized &/or convert to veFXS 

By rolling out points w/ a fixed vesting period, Frax can give more than $1 worth of rewards back. 

The lock-in period will offset any Sybil attacks caused by farmers insta-dumping their rewards

FXTL points will be tokenized within 12 months of launch. Whether this is as its own separate token or convertible to veFXS is unclear. 

The Frax DAO will have to vote on this decision in the future once the program has run for several months and sufficient data is collected

New veFXS Contract Support for Fraxtal

W/ Fraxtal, a new contract called veFXSCounter now creates a new global state of veFXS between the two chains ⛓️

This allows users to stake FXS on Fraxtal & also tracks the unlock date and balances of the Ethereum mainnet contract 📊

Read More About Fraxtal & Learn How To Connect To Fraxtal Here ⚙️

Read More About Fraxtal & Learn How To Connect To Fraxtal Here ⚙️
https://flywheeldefi.com/article/fraxtal