TOP 3 TL;DR
- % of 3Pool 128% // New ATH
- FraxPP // $115M TVL
- frxETH Monthly Revenue $157k // Assuming 7% APR and 189k frxETH
Frax Supply & Peg
The peg remained flat week over week. No change here.
Collateralization & Decentralization Ratios
The collateralization and decentralization percentages remained flat week over week. No changes here.
The TVL for FraxBP remained flat week over week. No change here.
% of 3 pool
Finally! We have some movement with an ATH in the 3Pool ratio. Big W. We see that Frax is completely integrated with Curve with the FraxBP, Frax3CRV, and FraxPP comprising more than 2x of 3Pool.
Here we have a new segment of our show where we take a look at IQ aka BrainDAO! Thanks to a recent grant passed by the BrainDAO community we will be covering their staking for at least the next 3 months. But before we dive into the staking portion, let’s get some fast facts. There’s a highly flexible locking system that ranges from as low as 1 week to 4 years. Similar to Curve, if the lock is for 4 years, the voting power is quadrupled. Though there is a linear decay in voting power!
The staking page for BrainDAO can be found here. The current APR is 127%, which is down 70 bps from last week, for single-sided IQ staking. There are only 177 stakers (an increase of 1 more staker!) so far on Ethereum but there are over 1700 holders. Come stake some IQ y’all!
Aside from the high APR, the main reason to stake IQ is to control the treasury, which is at $15.0M, down nearly 4% week-over-week. The largest holding is sfrxETH at $5.3M, 36% of the treasury. We love to see another DAO holding large portions of frxETH and FRAX on their balance sheets.
FrxETH supply and distribution
Another roaring week for frxETH, up 7.6% to a whopping 181,965! 62% of these frxETH is in sfrxETH, 27% is in Curve LP, and the remaining 11% is floating around earning yield across all of DeFi. Go check out Sam’s post on where all the floating frxETH is hanging out here.
More good news! We have a strong peg for the frxETH to ETH pair. The dashboard shows an exchange rate of 0.9999. When we go Curve we have an exchange rate of 0.9992. This may just be the best we’ve seen.
We’re holding onto the 2.0% with an increase to 2.11%! May is off to a great start with 7.8% growth so far. Though we weren’t the only ones, Rocket Pool also got some love and also increased by 31% in April then 4% so far in May, while we see that cbETH continue to bleed.
We’ve fallen off the top seat in the yield department. Ankr is leading the way at 7.4% and frxETH is in the middle of the pack at 6.4%. Though Lido and Rocketpool is on our heels at 6.2% and 5.7% respectively.
Here comes our producer Sam’s favorite: FPI! Though there isn’t much movement in the supply and the cap except for a small 20 bps change this week over last week. It’s important to track the equity of the FPI. Here we dropped by $200k to $4.3M in equity, which means there’s an excess of Assets when compared to the Liabilities on the balance sheet. If FPI were to fold tomorrow, then that $4.3M is distributed across all the FPIS (or veFPIS).
Again, not much as changed this week on Fraxlend. We see the collateral value is still much lower than where we were before the USDC depeg. The utilization rate has also been hovering around the 60s; we want to see this in the high 70s to 80s. Though the borrowed value has recovered, the collateral value is still quite far off.
AMO is at $817.2M, up 10 bps from last week — so pretty much flat. The change came from the Liquidity and Investor AMO gaining $900k and losing $600k, respectively. No changes to the Curve and Lending AMOs.
Revenue, Expenses, Profit
This is the beginning of May so it’s expected that we will be in the red. So we’re hopeful for May that we get to see another green month!
In the Fraxlend AMO, we increased 2.0M FRAX across the Fraxlend pairs. We’ve generated $15k in revenue for May so far. This is about $15k on avg per week. We also had no liquidation so far, and frankly, we want this number to be near zero so good job everyone for staying safe out there.
FPI’s May revenue is at $44k. That’s all that needs to be said.
The aggregate profit net income for May so far is a loss of $153k.
And that’s it for this week’s Frax Check! See you next week!
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.