3. The Frogment Solution
Frogment addresses these challenges by introducing a Hybrid Layer 2 Architecture that separates stable-pair execution from settlement.
3.1 Architecture at a Glance
Frogment operates as an Optimistic Execution Environment anchored on Solana.
Off-Chain Execution for Stable Pairs: Transactions involving stable assets (e.g., USDC-USDT, or Merchant Payments) are processed off-chain by the Frogment Sequencer. This allows for:
Instant Soft Finality: < 50ms response time.
Zero Gas volatility: Fees can be paid in the stablecoin being transferred.
On-Chain Settlement: The state roots of these transactions are batched and posted to Solana L1. This ensures that the security guarantees of Solana protect Frogment's state.
3.2 The "Native Gas" Revolution
Frogment removes the need for users to hold a volatile native token for gas.
Gas Abstraction: The network natively supports paying fees in whitelisted stablecoins (USDC, PYUSD, etc.).
Paymaster Logic: Behind the scenes, the Frogment protocol handles the conversion and incentivizes Node Operators.
3.3 Non-Inflationary Tokenomics
Unlike traditional chains, Frogment does not rely on inflation.
Value Accrual: As stablecoin transaction volume increases, the fees collected (in stablecoins) are used to buy back and burn/distribute the Frogment native token or reward Node Operators directly.
Operator Incentive: Node operators are motivated to maintain the network because holding the token grants rights to a portion of the real yield generated by the stablecoin flow.
3.4 Why Solana?
We chose Solana as our Settlement Layer because:
Throughput: It creates no bottleneck for our batch submissions.
Cost: L1 storage costs are negligible compared to Ethereum, allowing us to post data more frequently.
Ecosystem: Access to the deepest stablecoin liquidity in the non-EVM world.
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