Welcome to Frax Check. Your weekly frax vibe check. I am your host DeFi Dave, filling in for Kapital_K. As always, I'm joined by 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 call this week the “Just Keep Swimming” week. But cross your fingers and cross your chains I didn’t just jinx us.
Let's begin our regular programming with the Peg. We saw it get as low as $0.997 with a high of $1.000 for the week. Peg Check = Strong. We then looked at Curve via swapping 100M FRAX for USDC. We received a 0.9981 exchange rate, which is an increase of 9 bps compared to last week’s. Moving on we have our Collateralization %.
This is the % that conveys how much FXS (algorithmic) is used as collateral. We are unchanged over the week at 93.3%. We’ve been at these levels for the last 4 Frax Checks. Following we have the Decentralize %. We bounced off the lows and have been hovering around the 14 to 15% mark. This week we’re at 14.7%. But still 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 much better this week. Collat % could be better. Decent % bounce from ATL and now ranging.
Next, we have our new segment of the check where we look at FrxETH. As always, we check the peg. Peg check here is strong you see the price delta is only 0.0007 between frxETH and ETH. We obvs have to go into the market and check this ourselves and you see here that I tried to do a 3500 ETH swap which is roughly the amount of the largest frxETH holder and I get an exchange rate of 0.9981. That’s not too bad. Also, last week we had 61% of the frxETH staked in the Curve pool, and now we STILL have 61% of the supply inside curve. The APY as per Convex is at 11% projected. Littttt. That’s why everyone is here. Let’s see what the count looks like this week.
The count is at 42,058. And look at that chart, I know you can’t read it but just appreciate the verticalness off that graph. “Straight Tubular bro’.” +32%. Hot. On the staked side we see that 39% of all the frxETH is being staked to earn the ETH native staking rewards, which is 5-7% but since only about 40% frxETH is staked, sfrxETH stakers get a boost in their staking rewards. But also important to note that folks who are so deep into DeFi are so dam efficient. Literally less than 0.5% of the frxETH supply is just sitting naked, every other frxETH is put to work. Like the CapitalOne commercials: “What’s in your wallet?” Better not be WETH! Let’s do a quick summary check.
Peg check strong. Curve swap strong. Count up-only. Staked % healthy.
Let's jump into the AMO Holdings. We have a grand total of $548.0M across all the AMOs. This was unchanged compared to last week. The Curve AMO increased by $1M. So no news this week on the AMOs. Again we are ranging here too. No much movement in the past few Frax Checks.
Onto the profitability of the Convex AMO. We’re now at $620k in Revenue for the month of December so far. We paid roughly $750k in bribes plus the monthly opex of $430k for expenses. Therefore, for December we have a loss of $560k currently. But it’s still very early so let’s keep our hopes up. Upward and Onward champs.
Quick summary money check. AMO holdings was $549M, +0% WoW. Profitability, for November was down bad but we’re early into December so fingers crossed.
Here's my favorite section of the Frax Check. The Liquidity Check. Do you guys remember the theme of this week, it was “Just Keep Swimming”. And you know how we’ve just literally been ranging these past few weeks. (Dave gets excited) SOMETIMES WHEN YOU KEEP SWIMMING AND KEEP PERSERVERING, YOU WIN. We’re at 78% of the 3POOL. Let’s GO. WE AIN’T RANGING IN NO MO’. WE TRENDING UP BABY. The FraxBasedPool is $480.5M versus 3pool's $615M. The basedpool saw an increase of nearly 7% in TVL, that’s like $30M baby. But Note that we’re NECK-to-NECK with Frax3CRV pool again. Let’s first flip this then we set our eyes on the 3pool. Moving on, let’s chat about our metapools.
Reminder the metapool are pools that are PAIRED with the BasedPool, examples like LUSD/FraxBP. We’re ranging again now at $44.2M versus $44.4M last week. Pretty much unchanged. We did get as low as $38M 2 weeks ago so I’m glad to see this relief bounce. 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 $12.8M of TVL from non-stable pairs in the Metapools. These are pairs like cvxfxs/FraxBP and cvxcrv/FraxBP. Surprisingly, the non-stable pairs TVL was pretty much unchanged for the week (again for the third week in a row). So adding all of the stables and non-stables TVL, we have a total of $57.2M of liquidity paired against FraxBP, flat for the week. This ranging stuff is cute but please continue uponly next week!
Summary time. Liquidity Check. FraxBP is 480.5M which is 78% of 3Pool. The MetaPool is at $44.2M for stable pairs. And TVL of All pairs (stables + non-stables) are at $57.0M.
Lastly, the main reason why we track all of this is to make sure the FRAX supply could grow as big as possible. This week we're at 1.023B, which is a +0.5% move. We’re flirting with that 9-figure digit line and I don’t like it. We need to keep our eyes on the prize and grow this number. But expect this number to go down a bit, IF the Frax team decides to rebalance the Curve AMO and the FraxBP.
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Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.
