Connext Seeks Collaboration with Frax for 'Fast' FraxFerry

In a recent forum post, Max, a representative of the Connext Collective, outlined a proposal for integrating FraxFerry into the Connext protocol. Connext, known for its modular protocol facilitating secure transfers of funds and data between blockchain networks, is reaching out to the Frax community for feedback and support on the creation of a new bridge for Frax assets.

The Objective: Integrating FraxFerry for Fast and Efficient Transfers

Connext wants to use their rapid liquidity and execution layer to enable quick transfers (1-4 minutes) of FRAX and frxETH assets across various chains connected with FraxFerry. This would be a way to go around the 24 hour FraxFerry time, which is a design choice to protect the Ethereum based Frax protocol from hacks on other networks.

Connext's Solution: A Two-Layered Approach

Connext's protocol comprises two layers. According to their proposal:

• The lower level “slow path” focuses on crosschain messaging and value settlement. It ensures communication across chains by plugging into the most secure path available. For L2 to L2 communication, Connext uses native L2 bridges. For L1 to L1, Connext can plug into other communication channels and implement an optimistic mechanism (similarly to Fraxy Ferry).
• The upper level comprises a network of routers or liquidity providers.
  These providers front funds to users to immediately complete their transaction, and later receive a refund from the slow path. This system adds no extra trust assumptions, as routers are compensated only upon successful execution of user-requested actions. These LPs charge 5bps for their services, so the network is self sustainable.

The upcoming Connext upgrade plans to integrate FraxFerry, using it as the slow messaging path and enabling the liquidity network to front FRAX to users and settle credits via FRAX Ferry.

Enhanced Efficiency and Liquidity for FRAX

In the proposal, the Connext team lists the following benefits:

• Fast, zero-slippage transfer of FRAX (and all tokens in the FRAX ecosystem) across chains, with no additional trust assumptions. Direct L2 to L2 transactions are enabled.
• No code change from FRAX protocol
• Inclusion of FRAX routes in bridge aggregators like MetaMask, Li. Fi, and Socket that already integrate Connext.
• Developers can build crosschain applications that use FRAX tokens, like crosschain staking or other FRAX-based DApps.

Funding Request and Timeline

Connext is seeking $120k in funding from the Frax DAO to support the development and integration of a "Fast" FraxFerry. The proposed funding includes $90k in FRAX tokens and $30k in FXS tokens, with 50% disbursed at proposal approval and 50% upon completion. The completion timeline for the project is flexible, and Connext pledges to provide constant updates on progress.