This week... I call this week the “Down But Not Out” week. As the name suggests, this week we're deep in the dark on some key metrics but there's light at the end of the tunnel.
TOP 3 TL;DR
- frxETH // ∆ 2.2% market share unchanged over the past 14 days.
- FRAX // 0.995 exchange rates
- FraxLend // ATH Liquidations
Frax Supply & Peg
Pain pain pain. We are down yet again on the FRAX stablecoin supply to 806.7M – a 0.70% drop since 2 weeks ago. This may be the low of the year so far. As Dave said previously, this is what the bottoming process looks like. Regardless, we have to check the peg since this is still a stablecoin.
The Peg hit a high of 0.998 and a low of 0.996 on the dashboards but we can't trust that completely so we delve into the markets. Note that previously the pool of choice was FraxBP but since the pool is highly imbalanced at 78% FRAX and 22% USDC, we had to switch venues. Now we're swapping on 1inch exchange. But check that out! The peg even for 100M of FRAX is still $0.995 – even with the largest pool being imbalanced. Peg strong.
As mentioned, the FraxBP is imbalanced at the moment but it's still representing $450M in TVL, which had a small drop of 1.3% since the last Frax Check. On the volume front, the pool facilitated over 46M in volume so far equating to 10% utilization rate. Though, this isn't the only Frax-related pool on Curve.
We have the FraxPP consisting of $129M in TVL with a slightly better balance of 70/30 of FRAX/USDP. There's also the legacy pool of FRAX3CRV which has $19M in TVL.
FrxETH supply and distribution
Now onto the crowd favorite, le frxETH. We rocking strong here with 253,124 frxETH supply, a 2.9% increase. Though this was a slow 2 weeks, we know there are growth catalysts on the way.
Reminder, frxETH is still a stablecoin, just a stablecoin pegged to ETH instead of the dollar. In the markets, we swapped 3.5k frxETH for ETH via Curve and received an exchange rate of 0.9983, which is also a very strong exchange rate. Arguably, one of the best rates in the LSD landscape. The curve pool is slightly imbalanced at 73% frxETH and 27% ETH.
Speaking of imbalances, let's look at the market share.
We are FLAT!
For the past 2 weeks, we exhibited zero relative growth to our competitors. In the 30-day change column, frxETH grew by 5.2% whereas Rocket Pool and cbETH only grew by 4.41% and 4.47%, respectively. But these are the small potatoes when compared to Lido's lion's share of 74.4%. Not only are they large but stETH also grew by 6.2% – the largest growth across the top 5 LSDs. But do not fret, frxETH v2 is soonTM.
There's one area, however, that frxETh dominates and that's in the yield arena. Over the past 6 months, sfrxETH has earned 6.15% APY, which is 48% more than rETH and 29% more than stETH. This isn't a cherry-picked time frame. Head over to Facts.Frax.Finance and play with the chart.
The FPI grew by 2.2% to 84.6M in supply, a significant change since it hasn't moved for months. Also, the Annual Inflation Index was shifted up to 3.3%, a first since its descent from 5% earlier this year.
FraxLend had an amazing week but not for the users who got liquidated. The TVL is at $238M with $66.6M in borrowed amount representing a 74% utilization rate.
Fraxlend earned $227k in liquidation fees. VERY painful for the users. The highest single liquidation was $50,960 with 5 liquidations in the forty five thousand range. Please be safe out there.
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 $67.7M TVL across all the pools. This has been one of the more active week as over $15M in volume was facilitated by just the FXS/FRAX pair alone. In total, there's been 52M in volume so far in August, representing a 74% utilization rate.
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.