Frax Finance Introduces Fraxchain, an Ethereum Layer 2 Solution for DeFi
The team behind Frax Finance, renowned for creating the Frax stablecoin, has revealed their plans to launch Fraxchain, a Layer 2 blockchain. Fraxchain aims to provide a robust smart contract platform with a strong focus on decentralized finance (DeFi). According to Sam Kazemian, the founder of Frax, Fraxchain represents the culmination of the entire Frax ecosystem, leveraging the traction and usage it has garnered.
The network is expected to be operational by the end of the year and will be governed by holders of Frax Shares (FXS) tokens. Fraxchain will utilize the Frax stablecoin and Frax Ether, a liquid staking derivative, for transaction fees. Kazemian added that fees generated by the roll-up network could be burned or redirected to the Ethereum mainnet, benefiting stakers of the FXS governance token.
Fraxchain incorporates a Layer 2 rollup model, ensuring the security of the network by publishing state roots to the Ethereum mainnet. Notably, Fraxchain will feature decentralized sequencers, which are specialized nodes responsible for ordering transactions in a rollup network. These sequencers will be operated by entities chosen through governance voting, setting Fraxchain apart from other Ethereum Layer 2 solutions that rely on a single sequencer.
In Fraxchain’s design, sequencer roles can be auctioned and rotated, establishing a decentralized sequencer base. This allows for seamless continuity in case a sequencer needs to shut down, as the next elected sequencer can seamlessly resume the transaction processing from where the previous one left off, as explained by Kazemian.
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