The Frax Finance team plans to launch its own L2 blockchain called Fraxchain by the end of the year. The latest update from the team is simply that it can be expected “soon”:
Fraxchain soon ser! pic.twitter.com/eO0hCgM7B3
— Cryptovestor (@Cryptovestor77) July 20, 2023
Many crypto investors are excited about the potential for Fraxchain since the Frax team has a history of delivering quality products that offer innovation within the DeFi space:
I wouldn’t overlook @fraxfinance.#sfrxETH is the fastest growing $ETH LST there has been. It’s also the greatest yielding by a considerable amount.
frxETH v2, and $FRAX v3 are in the works, and the new #fraxchain will use frxETH to pay for gas.
A lot is cookin’ pic.twitter.com/wzqaocKVgf
— naly (@defi_naly) July 25, 2023
What is Frax Finance?
Frax Finance is a project that was launched in December 2020 by founders Sam Kazemian, Travis Moore, and Jason Huan. Their website describes the project as:
“The world’s most innovative decentralized stablecoins and DeFi stablecoin infrastructure. The Frax ecosystem is a self-sufficient DeFi economy utilizing stablecoins as currency.”
Currently, there are three decentralized stablecoins issued by the Frax protocol:
The protocol also features Frax Share ($FXS) governance token which can be “staked as veFXS to govern the ecosystem’s stablecoins and infrastructure protocols.”
What is Fraxchain?
Fraxchain was announced in June and excitement has steadily been ramping up within the Frax community since then. In a statement to The Block, Frax founder Sam Kazemian said “Fraxchain essentially represents the culmination of the entire Frax ecosystem and all of the traction and usage that we’ve gained”. Kazemian also discussed the project in-depth on the Flywheel DeFi podcast.
According to announcements, Fraxchain will continue to use Frax Share ($FXS) as the chain’s governance token, with Frax Ether ($frxETH) acting as the gas token.
The chain is expected to be a hybrid rollup consisting of both optimistic rollup architecture (used by Optimism and Arbitrum) and zero-knowledge proofs. This will ideally enable faster transaction finality and decentralized sequencer capabilities.
The fees garnered by the roll-up network may be burned or funneled back to Ethereum mainnet to be shared among FXS token holders.
Fraxchain Airdrop Task Guide
While no airdrops have been confirmed for Fraxchain, DeFi users have learned that any time there is a new chain launching, there’s always the potential for an airdrop. This is not only from the developer of the project itself but also from developers that are planning to launch projects on the chain.
In the video above we outline the following action you can take right now within the Frax ecosystem to position yourself for any airdrops that may be associated with Fraxchain upon launch. Don’t forget, you can also use the De.Fi Explore tool to compare Frax yield farming strategies. Use Explore in combination with our DeFi portfolio tracker to then find specific opportunities based on the contents of your DeFi wallets:
Swap on Fraxswap
Fraxswap is an AMM that is operated by Frax. It’s especially useful for swapping between the variety of Frax ecosystem coins: https://app.frax.finance/swap/main
Lend on Fraxlend
Fraxlend is a lending platform that provides lending markets between pairs of ERC-20 assets: https://app.frax.finance/fraxlend/available-pairs
Mint $FPI on FRAX:
Users can mint $FPI by exchanging $FRAX for $FPI: https://app.frax.finance/fpifpis/fpi
Mint $frxETH on FRAX
Frax has one of the most profitable Ethereum liquid staking operations via $frxETH. You can mint $frxETH from $ETH and swap it for $sfrxETH on the Frax app: https://app.frax.finance/frxeth/mint
Lock $FXS on FRAX
If you’re bullish on the developments Frax is pursuing, you may want to consider the $FXS governance token. This token can subsequently be locked for further rewards. Users may lock their $FXS for up to 4 years for 4x the amount of $veFXS (e.g. 100 FXS locked for 4 years returns 400 veFXS): https://app.frax.finance/vefxs
Staying Safe While Airdrop Hunting
While crypto airdrops can be hugely promising if you capitalize on the right opportunities, it’s also essential that you avoid projects that could leave your portfolio REKT via hacks and scams.
De.Fi helps with a variety of tools to keep you safe. Scanner, our free smart contract audit tool, functions as an instant intelligent evaluation. Users can quickly and effortlessly assess the safety of smart contracts across a wide range of EVM chains.
We also offer Shield, a tool to monitor and revoke crypto wallet permissions. It automatically scans your wallets for high risk tokens/NFTs/approvals and notifies you in case there are any.
Make sure to follow our De.Fi Security account on Twitter as well to stay up-to-date on breaking DeFi exploits. Your Fraxchain airdrop rewards are only as valuable as the security you use to protect them. Stay vigilant and protect your gains!
