coindesk.com
Frax’s singularity road map sets a target of $100 billion in TVL for its layer 2 Fraxtal and plans to launch 23 new layer 3s.
The proposal calls for reviving the few switch mechanisms to boost liquidity for the FXS governance token.
Decentralized finance (DeFi) protocol Frax Finance released a singularity road map on Friday to boost the total dollar value of crypto assets locked in its layer 2 blockchain Fraxtal to $100 billion by the end of 2026.
As of the time of writing, the so-called total value locked (TVL) in Fraxtal was $13.2 million, according to data tracked by DefiLama.
The road map proposed launching 23 layer 3s within a year and new assets like frxNEAR, frxTIA and frxMETIS. The existing assets, FRAX, sFRAX, frxETH, and the new ones will be issued on Fraxtal going forward, the proposal floated by founder Sam Kazemian and other contributors added.
Layer 3 protocols provide decentralized applications with a highly customizable and interoperable network built on top of layer 2 scaling solutions.
Kazemian also called for reviving a mechanism to share the protocol revenue with stakers of its native tokens.
“We propose that the protocol fee switch be turned back on, with 50% of the yield flowing to veFXS and the other 50% used to buy FXS and other Frax assets to pair in the FXS Liquidity Engine (FLE),” the proposal said. “FLE will allow Frax to continue building its balance sheet while significantly increasing the liquidity of FXS and its paired Frax assets.”
FXS is the governance and utility token of the Frax ecosystem. FXS holders who lock their tokens receive veFXS, which can be staked on the Ethereum mainnet and Fraxtal.
Besides, the plan details how new tokenomics will fully collateralize Frax’s stablecoin FRAX, one of the top 10 dollar-pegged cryptocurrencies in the world, and boost yields on staked FRAX (sFRAX).
FXS changed hands at $1.35 at press time, representing a 2% gain on a 24-hour basis. The cryptocurrency has declined 14% this year, underperforming the CoinDesk 20 Index, which has rallied 41%.