Before we get started, this is not a recommendation or endorsement to buy any token(s) mentioned.
This week, we cover the launch of Frax’s anticipated L2, Fraxtal and how to earn an airdrop of FXTL points based on a snapshot taken on March 6th at 11:59 pm UTC.
These FXTL points are expected to convert eventually to a tradable token, such as the Frax value-accruing token FXS. For those who stake FXS after the snapshot, they can still qualify for earning fees.
Built by the reputable team and community behind DeFi super-protocol Frax Finance, Fraxtal is a modular rollup blockchain with a “fractal scaling” roadmap. It is also appropriate to refer to Fraxtal as an Ethereum L2. Fraxtal has a number of both common and novel features:
- Fraxtal is an EVM rollup utilizing the OP stack, meaning deploying applications is as fast, secure, and cheap as the experience on top Ethereum rollups such as Optimism and Base.
- Fraxtal is a modular rollup, meaning it will have multiple components and middleware for other chains and L2s to use, connect to, deploy L3s, and build on top of. What’s most interesting is Fraxtal uses a separate data availability (DA) module developed by the Frax Core Team.
- Fraxtal is the first chain to offer blockspace incentives called Flox, which are block-by-block rewards based on usage of the chain. Accounts and smart contracts that use specific dapps on Fraxtal will be rewarded with FXTL points based on the Flox Algorithm.
- Each weekly epoch starting March 6th, users who spend gas and developers that deploy contracts where gas is spent earn FXTL points that can later be converted into tokens.
- The gas token for Fraxtal is Frax Ether (frxETH).
There will be a “large airdrop” of FXTL points to FXS stakers based on their veFXS (or staked cvxFXS) balance on March 6th, 2024 at 11:59pm UTC. The week after this airdrop on March 13th, the Flox mechanism will go live. At that time, dapps that have deployed and users that have brought assets to Fraxtal will start earning FXTL points every block that they use the L2.
Users can begin qualifying for FXTL points by staking FXS in the form of veFXS or cvxFXS.
- To stake veFXS, one must use the Frax Finance veFXS app here to lock up for a minimum of 1 week.
- To stake cvxFXS, one must stake for any length of time here. There is no lockup.
Today, I’ll show I can stake FXS to qualify for the March 6th snapshot, or at minimum begin earning FXTL in future weekly epochs beginning March 13th.
How to Stake cvxFXS and Earn The FXTL Airdrop with Fraxtal
Before we get started, please be aware of these risks.
- Smart contract risk in Frax Finance and/or Convex Finance
- Front-end spoof attack on any app frontend
- An economic design exploit
- Colluding signers on any multisig
- Risk of FXTL never converting to a tradable token
- Price risk holding cvxFXS or veFXS–either token could decrease in value
Here’s how I get started!
- First, I need to decide whether to acquire cvxFXS or FXS.
- With cvxFXS, I’m holding a liquid tradable version of veFXS, but issued by Convex. Any given day, cvxFXS tends to be less than 1:1 with FXS but cvxFXS is conveniently auto-locked for the maximum of 4 years.
- With FXS, I hold the true FXS token but I have to lock it up manually for 1 week or longer as veFXS. The drawback is veFXS is…
DeFi Dad is one of the earliest power users of DeFi, having worked with early Ethereum startups going back to 2018, including Zapper.
