This week... I call this week the "HIGHER" week. As the name suggests, we are heading to new heights.
TOP 3 TL;DR
- FRAX // 99.7% CR
- frxETH // Big Imbalance 85/15
- FraxLend // ~$1M in AMO + Liq Rev
![](https://ghost.flywheeldefi.com/content/images/2024/04/Screenshot-2024-04-02-at-5.26.26-PM.png)
1. FRAX // 99.7% CR
Now the CR is really as close as it could get to 100%. It was a long and deep bear market but we marched our way to 100% CR, one revenue dollar at a time.
For the last four months, the FRAX supply remained flat at $650M but what changed is our Assets.
![](https://ghost.flywheeldefi.com/content/images/2024/04/Screenshot-2024-04-02-at-5.33.30-PM.png)
![](https://ghost.flywheeldefi.com/content/images/2024/04/Screenshot-2024-04-02-at-5.33.39-PM.png)
Assets dropped by $6.3M (-0.7%), while Liabilities also decreased by $7.3M so that means the Equity Balance had a baby bump of $1.0M (+0.8%). This contributed to our CR going all the way to 99.7%.
In terms of liquidity, though now we have two options (USDC and PYUSD), we are still quite short from the large multi-9-figure TVL that we had last year. At one point, the amount of Frax-related liquidity pools on Curve versus the native 3Pool was 3-to-1. Now, it's closer to 1:1 as seen in the graph below.
![](https://ghost.flywheeldefi.com/content/images/2024/04/Screenshot-2024-04-02-at-5.45.56-PM.png)
2. frxETH // Imbalance of 85/15
We can't have all good things. Unfortunately, we're experiencing a downtrend for the crowd's favorite product, frxETH, and a great imbalance in the liquidity pools.
Imbalances cause the peg price to weaken drastically, as seen when we tried to swap 3.5k ETH, which was a number we've always used. The peg used to be in the 0.99x range but now it's 0.979.
![](https://ghost.flywheeldefi.com/content/images/2024/04/Screenshot-2024-04-02-at-6.21.59-PM.png)
![](https://ghost.flywheeldefi.com/content/images/2024/04/Screenshot-2024-04-02-at-5.46.56-PM.png)
We dropped below the 300k ETH mark and kept going lower to 279k ETH. Fortunately, we managed to hold onto our market share at 2%.
We are also climbing back up the rankings with us back in 5th! Stone dropped out of their place, experiencing a 27% drop over the last week.
More good news is that the monetary premium rose to 20%. That means there are approximately 75,000 frxETH being used outside of the Curve-Frax system – pretty great to see the adoption of Frax's LST in the wild. Also, every LPer and sfrxETH staker is receiving a sweet bonus on their yields.
![](https://ghost.flywheeldefi.com/content/images/2024/04/Screenshot-2024-04-02-at-6.07.57-PM.png)
3.FraxLend // ~$1M in AMO + Liq Rev
![](https://ghost.flywheeldefi.com/content/images/2024/04/Screenshot-2024-04-02-at-6.08.11-PM.png)
FraxLend is making it rain. Last we saw the revenue run rate nearly 3.5x'd since the beginning of the year. This week we are holding onto the revenue of $220k/week.
In addition to these interest earnings, Frax also earns profit from liquidation fees.
For March, 22 positions were liquidated, which amounted to $122k in fees for the protocol. This puts the total annual run-rate of FraxLend into the $13M ballpark. What a revenue-generating machine.
![](https://ghost.flywheeldefi.com/content/images/2024/04/Screenshot-2024-04-02-at-6.11.38-PM.png)
PS. Pour one out for the liquidated homies.
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.