"Gang Green" - FraxCheck #44

We're feeling “Gang Green” this week. As the name suggests, this week the protocol was profitable, and recovered from last week's hits.

June 20, 2023


  1. frxETH // ∆ +1.17% increase in supply
  2. Fraxswap // ∆ 140.7% in volume
  3. FraxLend // $250k in Liquidations

Frax Supply & Peg

The Frax supply continues to remain flat, the peg range is staying stable but, the Curve swap exchange rate has increased to $0.9975 from last week's $0.9974. As we always say we do not like to see the number 7. Aside from that, not much more to report here so let’s move on to the Collateralization and Decentralization Percent.

Collateralization & Decentralization Ratios

The Collateralization Percentage has been flat across the board for the past 9 Frax Checks. We did see a slight 0.05% drop though we continue march on toward 100%.  Next, we have our Decentralization Percentage, just like the CP, we got pushed down 0.07% where we currently sit at 21.83%.


We had some ups and a significant hit this week…  FraxBP’s TVL dropped by $28M (4.4%) down to 606M. The monthly volume dropped by 9.73M and utilization to 0.9%.   From the last week’s 134M jump, FraxBP seems to be having a little correction. Frax liquidity pools have maintained their strong leading positions amidst the drop in TVL. Even under pressure, the FraxBP asserts its dominance.

IQ Staking

Did you know that BrainDAO was founded by Sam K before he founded Frax Finance? That’s right! BrainDAO’s flagship product is their IQ.wiki, which is the crypto encyclopedia. We have nearly all of our Flywheel guests wiki page on there so be sure to check that out!

Additionally, you can stake IQ today to earn a mighty 112%. There are 1799 holders of IQ on Ethereum but only 183 are staked. There’s definite value in staking as the treasury is $13.6M. There needs more governance power to secure and direct the treasury.

Be sure to go to the staking page today here.

frxETH supply and distribution

Now onto the Fraxi favorite, frxETH.  We recovered well after last week’s painful gut punch. After dropping 4.5%, down to 225,268 frxETH; we recovered from the hit going up 1.17% to 227,905. Heading back up to the 230,000 range. The Curve LP gained an extra 3% showing us that the needed frxETH rebalance was a success!

frxETH peg

We’ve said it before and we’ll say it again frxETH is a stablecoin, just like any stablecoin except pegged to ETH instead of the dollar. So let’s check out the peg. The dashboard above shows 0.9975,  although we do not like having the number 7 it’s still a strong rate. We know better than to just rely on dashboards so let’s check the market rate. We swapped 3.5k frxETH for ETH via Curve and received an exchange of 0.9968 — yikes… We continue to slowly decline and bleed even after the reduction of frxETH from the Curve pool.

Competitive landscape

Speaking of landscape, let’s look at the LSD market.

Divided they fall but Frax Ether stays strong!

This week we were not only able to maintain our position in 4th but also our market share of 2.33%. Showing us that perhaps we may not be going down again, especially with the highly anticipated frxETH v2. June has been a slow month but hope is not lost. As we stay strong, frxETH continues to be in the middle of the contenders this week in the yield arena due to the drop in TVL. Though, frxETH persevered to once again lead the pack in APYs at a rate of 5.22%! The validators have been deployed!


Just like last week FPI has continued to remain quiet and maintain a flat position. This week was all about staying in position and preparing for the moment to strike with all the announcements and updates set to release. Nothing more to report here.


And were freeeeee, free falling!!

The Collateral Value and the Borrowed Value continue to keep falling down this past week.  We dropped an extra $14M in TVL on top of last week’s $40M+. The cliff seemed to be higher than we thought, with the borrowed value dropping by $5.3M and the Utilization rate falling further down to 46% (∆ -23%). We will get to liquidations in just a moment.


If you know, you know. Fraxswap, the underdog of all Dex’s, not very well known but it’s consistently pushing and maintaining massive amounts of volume; especially this week!

The TVL bounced back by 15.7% back to $66.4M TVL across all the pools. It has not reached this level since late April this year! That’s not all, we went to the moon as the Fraxswap volume skyrocketed to 140.7% since last week! The FPI controller FRAX/FPI pair added a total of $89.39M in TVL in addition to the FXS/FRAX pair climbing back up to $10M in weekly volume.


Revenue, Expenses, Profit

Money comes to those who solve problems, and boy does Frax solve them.

With two weeks left, June has proven to be quite an exciting month so far. We have seen a $246k increase since last week, generating a total of $551k in revenue and only $76k in expenses. The Convex AMO redeemed itself generating $396k, more than triple the loss of last week! With FraxLend, we generated an extra $22.7k bringing us to $66.7k

With further liquidations, we dropped below the protocol’s avg Utilization rate of 46%. Sadly, liquidations continued and flooded into this week.  We generated a massive amount of over $250k in liquidation fees.  Last week’s blow to the face left our heads broken. And so, another one shall be poured out for all the homies.

Following we have frxETH which generated $191,424 in revenue which was lower than last week’s but we still take the victory. Lastly, we have the FPI which generated $9.9k in profit.

That is it for this week’s Frax Check #44! We hope you guys enjoyed this one and see you next week as we fall closer to the end of June!


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.

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