TOP 3 TL;DR
- FRAX // 11% Decrease in Supply to 812.6M
- FRAX // 0.9815 exchange rates on Curve
- frxETH // 2.3% Stagnant Market Share for the last 30 days
Frax Supply & Peg
We are hurting. The FRAX supply dropped to 812.6M, down 11% since 2 weeks ago. The source of this decrease was the Frax3CRV pool dropping from $130M TVL to $21M. But that’s not the only unfortunate news, the peg via Curve’s FraxBP pool is also quite teetering at a 75/25 split. Even with a $456M in TVL, the exchange rate is 0.9815 for 100M of FRAX. But as Dave said, this is what the low looks like.
IQ Staking
Did you know that BrainDAO was founded by Sam K before he founded Frax Finance? That’s right! BrainDAO’s flagship product is their IQ.wiki, which is the crypto encyclopedia. We have nearly all of our Flywheel guests wiki page on there so be sure to check that out!
Additionally, you can stake IQ today to earn a whopping 108%. There are 1758 holders of IQ on Ethereum but only 180 are staked. There’s definite value in staking as the treasury is $18.5M. There needs more governance power to secure and direct the treasury.
Be sure to go to the staking page today here.
FrxETH supply and distribution
We also see nominal growth in frxETH. We’re at 245,855 frxETH with a growth rate of 1.7% week-over-week. We’ve been pretty stagnant in growth and it shows.
FrxETH peg
Reminder, frxETH is still a stablecoin, just a stablecoin pegged to ETH instead of the dollar. So we must check the peg. The exchange rate to swap 3500 frxETH is 0.9965. As we’ve mentioned, we don’t like to see an exchange rate below a 0.9970. The current composition of the pool is at 80/20 but Sam said that they’ll increase the incentives this week so hopefully things will balance out.
Competitive landscape
We’re stagnant. Actually, we’re slightly down even. The more concerning issue is that all our competitors are growing faster than we are. This just may be the case for now as we can still attract more stakers after frxETH v2. Let’s hope.
FPI
Some good news! We saw some movement on FPI with an increase of nearly 200k in supply. This also increased the treasury TVL by 200k. The equity is still hovering around $4M.
Fraxlend
FraxLend had an amazing week. We got to witness what happened live, in production. Curve Finance founder had to repay their FraxLend position first before any of the other lending protocols. FraxLend design allowed it to take the first bite out of the apple per se. And we see that the Borrowed Value and the Collateral Value are still holding strong.
Fraxswap
Lastly, we have the final leg of the DeFi Trinity with FraxSwap. We like to call this the Dex that no one talks or knows about but it’s pushing out major volume relative to its size. There are only $70.2M TVL across all the pools. For the month of July, the DEX facilitated $52M in volume.
ACCESS TO SLIDES: Here
Not financial or tax advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This post is not tax advice. Talk to your accountant. Do your own research.
