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 call this week the “Run It Back, Turbo” week. And you’ll see what I mean. I got some new new for the real real ones out there today. Hope you guys enjoyed our Halloween special with Scupy Trooples, if you haven’t you can check it out in the link here and in the notes.
Let's begin our regular programming with the Peg. We saw it get as low as $0.999 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 0.9992 exchange rate, which is pretty much unchanged compared to last week’s. Moving on we have our Collateralization %.
This is the % that conveys how much FXS (algorithmic) is used as collateral. So I did something a little different this week. Shoutout to Seba here for putting together a dashboard that highlights the collateral ratio for the OUTSTANDING FRAX aka non-Frax controlled. A reminder, Frax protocol owns a lot of its own FRAX and theoretically, Frax won’t ever redeem its own underlying collateral backing so the only real collateral ratio we should monitor is that of the OUTSTANDING FRAX, which currently sits at 90.9%. I’ve included the previously used Collateral Ratio for ALL of the FRAX, which is at 93.25%. Following we have the Decent %. We are unchanged at 14.5% from lats week. Still relatively close to ATL. 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 % could be better Decent % low.
Now. Here’s that surprise I had in store for you guys. This is a new segment that I’ll be adding going forward in all Frax Check. And today’s theme was “Run it back turbo” so I gotta share with you guys how Frax is gonna be running it back turbo with new stablecoin, FrxETH.
As always, we check the peg. But before that, quick shoutout to the homie Struct3r who built this dashboard. Frax community is the coolest. Join us in telegram @flywheelpod on telegram. So let’s dive in. Peg check here is strong you see the price delta is only 6 bps 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 400 ETH swap which is essentially the whole pool and I get an exchange rate of 0.9661. That’s pretty dam good for taking out all the liquidity. Also, we currently have 12.5% of the frxETH staked in the Curve pool. Let’s look at what the count looks like.
The count is at 3,355. And look at that chart, I know you can’t read it but just appreciate the verticalness off that graph. Hot. On the staked side we see that 84% of all the frxETH is being staked to earn the ETH native staking rewards, which is 5-7%. But because only 84% is staked the yield is a little higher. Now this begs the question, why is that 12.5% of frxETH folks is in the Curve pool earning basically 0.30% APR when they can be earning 5-7% here. I think it’s because they want to position themselves when the flywheel is turned on. The frxeth/ETH gauge got approved recently and we’re gonna see the party starting real soon. And I’d imagine there may be an imbalance between the frxETH/ETH pool so maybe the early birds don’t wanna be hit with the slippage when the pool is imbalanced. Okay. 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 $611M across all the AMOs. This was a increase of 20 bps compared to last week. All other AMOs remained largely unchanged.
Onto the profitability of the Curve AMO. We’re now at $2.49M in Revenue for the month of October. We’re at a breakeven for the month of Oct. I’m so glad we barely made the cutoff here. Granted, I didn’t put in the votium bribes that were due yesterday on 10/31 and imma count that for November.
Quick summary money check. AMO holdings was $611M, +20bps WoW. Profitability, we’re pretty much breakeven. So lets see how November fairs.
Here's my favorite section of the Frax Check. The Liquidity Check. Did I mention we’re in the RUN IT BACK TURBO mode. We’re at 95% of the 3POOL. The FraxBasedPool is $735M versus 3pool's $774. The basedpool saw an increase of 8.4% in TVL. Hotness hotness hotness. I’m not gonna stop there. Let’s check out the metapools baby.
As I said, the party don’t stop, let’s cheers to 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 $100M, a 24% increase WoW. We flew pass $90M and straight up broke $100M. 9 FIGURE CLUB BABY. 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 $11.6M 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 $111.6M of liquidity paired against FraxBP, a 23% WoW growth. Clap yall.
Summary time. Liquidity Check. FraxBP is 735M which is 95% of 3Pool. The MetaPool is at $100M for stable pairs, marking a 24% increase over last week. And TVL of All pairs (stables + non-stables) are at $111.6M.
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 unchanged. I’m sorry to climax at such a meh point but this is important to highlight for us. We need to keep our eyes on the prize and grow this number.
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