Welcome to Frax Check. Your weekly frax vibe check. I am your host Kapital K. As always, I'm joined by my co-host Defi Dave and our producer extraordinaire Sam. We will be going straight to the source of truth via checking the chain. Before we jump in, please subscribe to the flywheelpod and follow us @flywheelpod on twitter and tg.
This week.. I’m speechless... Warning. Be prepared for pain. I call this week the “It’s not about getting knocked down, but about how you pick yourself back up” week. And you’ll see what I mean.
Let's begin our regular programming with the Peg. We saw it get as low as $0.998 with a high of $1.000 for the week. Peg Check = Strong. We then took a look at Curve via swapping 100M FRAX for USDC. We switched it up since the FraxBP is now larger than the Frax3CRV. We received a 0.9990 exchange rate, which is pretty much unchanged compared to last week’s but still better than the Frax3CRV pool. Moving on we have our Collateralization %.
This is the % that conveys how much FXS (algorithmic) is used as collateral. With the market bumping like it is, I’m surprised that our Collat % actually WENT UP! Like WTF. We hit a new ATH of 93.3%. Not great yall. Following we have the Decent %. We saw a new ATL last week but luckily we bounced up to 14.5%, which is a 2.3% increase from the low. V v v v much bear market vibes across the board when it comes to these two metrics. We want to see the Collat % going back to the low 80s and the Decent % going back to 30s.
Okay. Quick summary Health Check. Peg Good. Curve Swap Good. Collat % hitting new ATH of 93.3%. Decent % bounced from ATLs.
Let's jump into the AMO Holdings. We have a grand total of $610M across all the AMOs. This was a decrease of 8.4% compared to last week. MASSIVE dump from the Curve AMO, losing about $50M of liquidity. Not sure where it went but this is foreshadowing that stablecoin TVL may be going down so maybe bull market? Resume up only? Nothing much changed from the other 3 AMOs.
Onto the profitability of the Curve AMO. We’re now at $2.0M in Revenue for the month of October. We’re at a loss of $0.45M for the month of Oct, but luckily we don’t have to pay the votium bribes for another week so we’re gonna get to rake in some dough for the rest of October. Happy Halloween, this is def a treat not a trick. Steady lads, deploying treats.
Quick summary money check. AMO holdings was $610M, -8% WoW. Slight cloudiness in the horizon for stablecoins TVL, but maybe bullish for risk assets? Profitability we’re down as of this Frax Check but expect a positive number for the month of October.
Here's my favorite section of the Frax Check. The Liquidity Check. My fellow Fraximalist... my brethren and my sistren! To use the wise words of Aristotle, we down horrendous. We’re at 86% of the 3POOL. I know. I know. We held on for so many weeks and the floor opened from beneath us. But I will not leave us here. Come, let’s muster up our courage and relish in the challenge. The FraxBasedPool is $678.7M versus 3pool's $785.9M. The basedpool saw a decrease of -17.3% in TVL, while the 3POOL say a slightly less severe drop in TVL. However, the FraxBasedPool is still much larger than the Frax3CRV pool, nearly 20% larger. Tune in next week to watch the revenge tour – maybe.
As I said, I will not leave us below in the pit of dark abyss, let’s rejoice with the metapools. Reminder the metapool are pools that are PAIRED with the BasedPool, examples like LUSD/FraxBP. The Metapools just hit a new ATH of $80.9M, a near 20% increase WoW. We flew pass $70M and straight up broke $80M. Let’s see if we can keep this going. Any projects out there looking to work with the Metapool, please join the Flywheel pod TG chat and DM any of the hosts for assistance.
Also one quick note, we also have an additional $9.6M of TVL from non-stable pairs in the Metapools. These are pairs like cvxfxs/FraxBP and cvxcrv/FraxBP. So adding all of the stables and non-stables TVL, we have a total of $90.5M of liquidity paired against FraxBP, a 16% WoW growth. Clap yall.
Summary time. Liquidity Check. FraxBP is 678.7M which is 86% of 3Pool. The MetaPool is at $80.9M for stable pairs, marking a 20% increase over last week. And TVL of All pairs (stables + non-stables) are at $90M.
Lastly, the main reason why we track all of this is to make sure the FRAX supply could grow as big as possible. Guys and gals, I’ve warned you at the beginning of this Frax Check. Do you remember the warning? Be prepared for pain. This week we're down 10.8%. We’re at $1.21B from 1.36B. Moment of silence…. Tune in next week for the revenge tour.
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