Frax Finance, a prominent stablecoin and DeFi protocol managing assets worth $874 million, has unveiled a strategic collaboration with PotatoSwap, enabling the integration of its assets onto X Layer, OKX’s Ethereum Layer 2 solution.
The announcement, made on April 25, disclosed PotatoSwap’s intention to support Frax’s FRAX stablecoin and liquid staking token frxETH, alongside various other financial instruments. This integration aims to offer novel avenues for Frax asset holders to yield farm.
Frax Assets coming soon to @okx's new zk L2 @XLayerOfficial with partner integrations on deck 🤝 $FRAX will be on the ground floor powering DeFi & yields on day 1. #FraxEverywhere https://t.co/KPVLkwGwsF
— Frax Finance ¤⛓️¤ (@fraxfinance) April 25, 2024
Frax expressed its enthusiasm for the partnership, stating that FRAX will play a pivotal role in powering DeFi and yield generation from the inception of X Layer.
OKX, ranked as the second-largest centralized exchange by 24-hour trade volume according to CoinGecko, introduced X Layer to the mainnet last week, previously known as X1. Leveraging Polygon’s Chain Development Kit (CDK), X Layer provides developers with tools to construct Layer 2 solutions secured by zero-knowledge proofs.
At launch, X Layer onboarded over 200 DeFi protocols, following a successful beta testnet rollout in November 2023. Presently, X Layer boasts a total value locked (TVL) of $5.49 million and has facilitated approximately 27.5 million transactions. OKB, OKX’s ERC-20 token, serves as the network token for X Layer.
Inspired by the success of Base, Coinbase’s thriving Layer 2 network, OKX ventured into the realm of Layer 2 solutions with X Layer. Base, launched on mainnet in August 2023, has amassed a TVL of $5.62 billion and generated over $50 million in revenue, further inspiring the development of X Layer.
In another strategic move, Frax Finance recently greenlit a proposal to collaborate with Ethena Labs in launching a liquidity pool facilitating trading between FRAX and Ethena’s USDe stablecoin on Curve. This pool, featuring a $250 million debt ceiling for USDe, aims to foster growth in the on-chain dollar economy, as highlighted by Ethena Labs.
Excited to share the approval of FRAX's singularity roadmap proposal, which includes an allocation towards a USDeFRAX POL via the Curve AMO with a $250m USDe ceiling pic.twitter.com/eM9T4Cjm22
— Ethena Labs (@ethena_labs) April 8, 2024
