[BIP-608] Deploy Balancer on Fraxtal

Authors

Frax Finance Core Team

Summary

This proposal seeks to deploy Balancer on the Fraxtal Network, enabling liquidity provision and fostering ecosystem growth. The deployment will be supported by the Flox program, incentivizing active liquidity, and expanding available assets through DeFi use cases built on Fraxtal.

Introduction

Fraxtal is a modular rollup blockchain (L2) with a “fractal scaling” roadmap. It boasts a range of familiar and novel features that set it apart:

  • Fraxtal operates as an EVM equivalent rollup, leveraging the OP stack as its smart contract platform and execution environment. This ensures that deploying applications is as fast, secure, and cost-effective as leading Ethereum rollups like Optimism & Base.
  • Fraxtal implements blockspace incentives, known as Flox, which reward users and developers for gas expenditure and smart contract interaction across the network. Every epoch, users spending gas and developers deploying contracts that consume gas earn FXTL points. This novel approach allows users to earn more rewards than gas spent and developers to earn beyond the gas consumed by their dapps.
  • The native gas token within Fraxtal is Frax Ether (frxETH), issued by Frax Finance, offering an efficient and tailored solution for transactional needs within the ecosystem.

Proposal Details

Motivations

Access to Fraxtal’s Growing Ecosystem: By deploying on Fraxtal, Balancer gains access to a rapidly growing ecosystem with significant potential for expansion and innovation. Fraxtal’s modular rollup architecture, combined with its EVM equivalent functionality and blockspace incentives, offers Balancer an ideal environment to reach new users, tap into emerging markets, and explore novel use cases.

Integration with Flox Program: Fraxtal’s innovative Flox program presents an opportunity for Balancer to integrate its automated market-making mechanisms into a thriving incentive ecosystem. By participating in the Flox program, Balancer can incentivize liquidity providers and developers to engage with its protocol, driving liquidity growth and adoption while maximizing value for its ecosystem participants.

Liquidity Provisioning and Fraxtal Growth: Balancer’s flexible and efficient automated market-making mechanisms make it an ideal candidate for liquidity providers on Fraxtal. Through Balancer’s deployment, we anticipate a significant increase in liquidity provision, facilitating seamless asset swaps and improving the overall user experience on the Fraxtal network. This, in turn, will contribute to the growth and expansion of Fraxtal as a leading decentralized finance (DeFi) ecosystem.

Positioning Balancer as Core Infrastructure: Integrating Balancer into the Fraxtal ecosystem will establish it as core network infrastructure and pave the way for future product developments. By leveraging point incentives through the Flox program, we can catalyze growth across various use cases and amplify the impact of this deployment.

Proposal

This proposal asks the Balancer community to support the deployment of Balancer on the Fraxtal Network. Specifically, we propose the following:

  • Authorize the deployment of Balancer on Fraxtal.
  • Integrate Balancer into the Flox program to incentivize trade volume and liquidity provision.
  • Collaborate with Balancer contributors on a deployment timeline that aligns with Fraxtal’s objectives.

Timeline/Next Steps:

Fraxtal will facilitate discussions and work closely with the Balancer community to finalize deployment details and timelines.

Links

Project: https://www.frax.com/

Ecosystem: Frax.com

Docs: About Fraxtal | Fraxtal Docs

Github: GitHub - FraxFinance/fraxtal-node

Fraxscan: https://fraxscan.com/

Bridge: Fraxtal Tools

Audit: Audits | English 🇰🇾 | Frax ¤ Finance

Twitter: https://twitter.com/fraxfinance

Voting

For: Authorize the deployment of Balancer on the Fraxtal Network.

Against: Do nothing.

5 Likes

https://snapshot.org/#/balancer.eth/proposal/0x57fe0f1c5f49f5fa5b46da1b98ac461b1ac673f61906979bbcd7e2f9040fbafa

3 Likes

In general, we have to be mindful with our resources given v3 is on the horizon but deploying to Fraxtal seems a natural fit given their LST product-line and our strong partnership. In full support

2 Likes

Frax has been a great partner/valuable contributor not just in the Balancer eco, but across defi–full support.

1 Like

Frax uses Balancer pools on several chains to deepen the liquidity of its several tokens (FRAX, sFRAX, srfxETH, etc), and have deep roots on the ecosystem. Therefore, it seems a natural move to have a deployment on its chain.

1 Like