In February 2024, Frax Finance plans to unveil its new second-layer network named Fraxtal. This announcement was made by Sam Kazemian, the founder of Frax Finance. Fraxtal will be based on an innovative combination of optimistic rollups and zero-knowledge proofs, promising significant improvements in transaction processing.

The goal of launching Fraxtal is to attract investments of over $1 billion in the first quarter after its launch. The frxETH token will be used as the primary means for paying fees in the network. Additionally, Frax Finance developers plan to implement a special incentive program that will allow users to earn regular income.

Frax Finance is already known for its diverse ecosystem, which includes the algorithmic stablecoin FRAX, a lending platform, the native token FXS, the stablecoin FPI, and the frxETH coin for liquid staking. At the time of writing, the market capitalization of FRAX reached $648 million, and the total value locked (TVL) in Frax Finance exceeded $1.08 billion.

The launch of the Fraxtal network represents a significant event in the DeFi (decentralized finance) sphere, and it is expected to have a considerable impact on the market. It also encourages other projects such as Gitcoin, Astar Network, Canto, and the cryptocurrency exchange Kraken to consider creating their own L2 solutions for Ethereum.