Frax Finance, known for its diverse stablecoin offerings, has introduced Fraxtal, its latest development in the Ethereum Layer 2 space, constructed atop the OP stack. To commemorate the launch, Frax is set to distribute $FXTL points to veFXS stakers, with the snapshot scheduled for March 6. In the last 24 hours, FXS has seen a 2% decrease in value.

Fraxtal distinguishes itself within the Layer 2 sector with its unique Flox blockspace incentive mechanism, which rewards utilization on a per-block basis. This initiative aims to enhance engagement and utility on the new blockchain.

Following the snapshot, the Flox system will be activated on March 13, rewarding dapps deployed on Fraxtal and users who have transferred assets to the platform with $FXTL points for each block processed.

Fraxtal promises an accessible, cost-effective, and Ethereum Virtual Machine (EVM)-compatible platform, collaborating with leading Web3 infrastructure projects such as Etherscan, Safe, Chainlink, Axelar Network, and LayerZero Labs to enrich the user experience.

Furthermore, Fraxtal intends to launch a retroactive public goods funding mechanism (RetroPG) to support infrastructure and application developers within the Superchain ecosystem, demonstrating its commitment to fostering innovation and growth.

As a prominent DeFi protocol with $1.4 billion in total value locked (TVL) according to DeFiLlama, Frax has significantly contributed to the DeFi space since its inception in late 2020, notably through the issuance of the FRAX dollar-pegged stablecoin and the growth of frxETH, its Ethereum liquid staking token.