FRAX on Fraxtal: Role & Usage Guide as Native Gas Token on L2 Network

Introduction to the Fraxtal Network

Figure:https://frax.com/

Fraxtal is a layer two modular Rollup blockchain launched by Frax Finance, built on top of the Optimism OP Stack, and compatible with the EVM environment. The design goal of Fraxtal is to achieve “Fractal Scaling,” which means deploying multiple layer three networks (L3) on the L2 network to modularly address the blockchain scalability challenges.

Fraxtal currently has the following key features:

• EVM Equivalent Rollup: Supports seamless migration of projects for Ethereum developers;
• Modular component design: Facilitates integration of middleware and sharing of DA layer functions with other chains;
• Flox incentive mechanism: Rewards users and developers through gas consumption, encouraging activity and deploying innovation.
• Independent DA Module: Developed by the Frax core team to improve data processing efficiency.

In this new type of L2 network, FRAX is given an unprecedented important role as the network’s native gas token.

FRAX’s core positioning on Fraxtal

Unlike traditional L2s that use ETH as the gas token, Fraxtal uses FRAX as the payment medium for mainnet transaction fees. This means:

• All smart contract interactions, token transfers, deployment operations, etc. on Fraxtal use FRAX to settle gas.
• Users consume gas using FRAX and will receive FXTL points rewards based on the Flox model.
• The network incentive mechanism will encourage more developers and users to be active in the Fraxtal network, enhancing ecological prosperity.

This move not only enhances the on-chain usability of FRAX but also strengthens its value capture logic as a core asset in DeFi.

How to obtain FRAX and use it on Fraxtal

If users want to use FRAX on the Fraxtal network, they need to follow the steps below:

1. Bridge to acquire FRAX (transfer from mainnet)

• Users can obtain the native FRAX of the Fraxtal network by depositing FXS (ERC20) tokens from the mainnet into the native L2 bridge of Fraxtal.
• Operating procedure:
  1. Hold FXS on the Ethereum mainnet;
  2. Visit the bridging page of Fraxtal (bridge.frax.finance);
  3. Bridge FXS to Fraxtal, the system will automatically convert it to FRAX (L2 gas token);
  4. Wait for bridge confirmation, and you will see FRAX in the Fraxtal wallet.

2. Bridge FRAX back to the mainnet

• If users wish to transfer FRAX from Fraxtal back to the mainnet, they will need to undergo a 7-day exit period (fraud proof), and the bridged assets will revert to FXS (ERC20).

Cross-chain operations of WFRAX and Frax Mesh

Figure:https://docs.frax.com/fraxtal/gas-fees/FRAX

To achieve broader interoperability on Fraxtal, users can also wrap the native FRAX as WFRAX:

• WFRAX is a standard ERC20 Token that represents a mapped version of the native FRAX of Fraxtal;
• You can freely transfer across chains to other integrated chains (such as Ethereum, Base, Arbitrum) in Frax Mesh;
• Applicable to DeFi application scenarios, such as Curve, Balancer, lending platforms, etc.

With WFRAX, users’ assets on Fraxtal are no longer limited to a single chain and can easily access the entire Frax cross-chain ecosystem.

Why choose FRAX as the advantage of gas

Fraxtal designates FRAX as the native gas Token, which is not just a technical choice but also an economic strategy:

• Price stability: Using FRAX can avoid the uncertainty of gas costs caused by ETH/USDT fluctuations;
• Inherent value closed loop: Users pay gas with FRAX, receive point rewards, and then exchange them for Frax assets, forming a positive incentive cycle;
• Promoting the real use of FRAX: Compared to simply being a stablecoin or trading pair asset, the use of gas greatly enhances the on-chain circulation of FRAX.

This design innovation also provides an economic model example for other modular Rollups.

Conclusion

FRAX is no longer just a stablecoin; it is the energy that powers the Fraxtal network. Through bridging mechanisms, wrapped Token design, and Flox incentive logic, FRAX has become the most essential fuel asset within the Frax ecosystem. As the Fraxtal ecosystem continues to expand, the on-chain utility of FRAX will keep strengthening, making it a new generation Web3 infrastructure asset worthy of close attention.

Figure:https://www.gate.com/trade/FRAX_USDT

The FRAX Token has recently experienced a significant decline, please trade with caution and be aware of the risks.