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 know everyone is looking at the price chart. I’m not going to make a comment on it but simply here to remind everyone all the other charts that we should be looking at. I call this week, “keep your eyes on the ball” week. And you’ll see what I mean.
Let's begin our regular programming with the Peg. We saw it get as low as $0.998 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 0.9988 exchange rate, which is pretty much unchanged compared to last week’s but still better than the Frax3CRV pool. Moving on we have our Collateralization %.
This is the % that conveys how much FXS (algorithmic) is used as collateral. With the market bouncing around like it is, it’s expected that the collat % remain high because of the uncertainty and this week we stayed at the ATH level of 93.0%. Following we have the Decent %. We saw a new ATL of 14.2%, which is a 3.0% decrease from 14.6%. So, don’t be distracted by the price chart that’s going up and to the right, it is still 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 % flat Week-over-week. Decent % new ATLs.
Let's jump into the AMO Holdings. We have a grand total of $666M across all the AMOs. This was a decrease of 1.3% compared to last week. Not too big of a dump but this week’s drop is attributable to Liquidity AMO which dropped a hot $10M. This is the AMO that manages Frax, FXS liquidity across the Uniswap, Sushiswap, Fraxswap, etc. And the Curve AMO has remained flat for the last 2-3 weeks so not great.
Onto the profits. The Frax Team did indeed call the claim function over this past week and we’re now at $1.3M in Revenue for the month of October. But we just prepaid the Votium bribes yesterday so we’re back in the negative for the month so far. We’re at a loss of $1.2M for the month of Oct, but remember the CRV and CVX rewards are going to keep flowing in for the next 2 weeks so steady lads, deploying more profits.
Quick summary money check. AMO holdings was $666M, -1.3% WoW. Slight cloudiness in the horizon.
Here's my favorite section of the Frax Check. The Liquidity Check. My fellow Fraximalist... we are… MAINTAINING THE GAP! We’re keeping at 98% of the 3POOL, we were 98% last week. The FraxBasedPool is $820M versus 3pool's $836M. The basedpool saw a decrease of -1.7% in TVL, while the 3POOL say a similar drop in TVL. The BasedPool is 98% of 3Pool. However, the FraxBasedPool is still much larger than the Frax3CRV pool, nearly 30% larger. Tune in next week to watch the reflippening – maybe.
Then let's transition over to the Metapools! Reminder the metapool are pools that are PAIRED with the BasedPool, examples like LUSD/FraxBP. I told yall to stay focus and this is what we should pay extra attention to. The Metapools just hit a new ATH of $67.6M, a 7% increase WoW. We’re holding firmly above $60M for the last 6 weeks. 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 $10.4M 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 $78M of liquidity paired against FraxBP. Clap yall.
Summary time. Liquidity Check. FraxBP is 820M which is 98% of 3Pool. The MetaPool is at $67.6M for stable pairs, marking a 7% increase over last week. And TVL of All pairs (stables + non-stables) are at $78M.
Lastly, the main reason why we track all of this is to make sure the FRAX supply could grow as big as possible. Fortunately this week we're slightly up by 0.0.1% at 1.363B. So remember to stay focus on the game even when you see all the crazy price action.
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