The modular thesis is growing week by week.
We are seeing the rise of new L2s and appchains happening at a rapidly accelerating pace now.
Our second podcast as a team featuring Sam Kazemian from Frax Finance is here.
Frax started its journey as a decentralized stablecoin and has expanded significantly to include a broader range of DeFi tools and assets, making their modular L2 more appealing from our POV.
The backbone of Frax's operations is its modular L2, Fraxtal, which brings together protocols, liquidity, and monetary policies within one chain. Fraxtal enhances efficiency and transparency, setting a foundation for Frax to function akin to a decentralized central bank. Within this framework, Fraxtal uses an incentivization system known as Fraxtal points, which rewards popular contracts based on their usage and gas consumption.
This creates a reputation-based system that promotes sustainable development within the Frax ecosystem.
Additionally, we discussed how Sam plans to encourage the development of L3s atop of Fraxtal. This means dApps can launch their own chains while benefiting from the underlying Frax protocol and liquidity. This is part of Frax's fractal scaling vision, where L2 and L3s can generate revenue and contribute back to the overall ecosystem.
Explore how Fraxtal, powered by Frax, is morphing into its broader vision of becoming a decentralized central bank in todays episode!
Hope you enjoy.
The Rollup
Frax Finance Website: https://frax.finance/
Frax Finance Socials: https://twitter.com/fraxfinance
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