"It's Good" - FraxCheck #35

This week... I call this week the “It's Good” week. As the name suggests, this week it's good.

Apr 18, 2023


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  1. % of 3Pool // Maintain 113% for 6 Weeks
  2. frxETH // 8% Week-over-Week Growth
  3. frxETH // 0.9995 frxETH to ETH exchange rate

Frax Supply & Peg

The FRAX stablecoin supply has been flat for the past 6 weeks.   But on Curve, we see a steady rise in the exchange rate back to $0.9989 when we swap 100M of FRAX for USDC.

Collateralization & Decentralization Ratios

The collateralization ratio hit a new high at 93.8%.  The decentralization percentage dropped small by 40 bps to 22.4%.


FraxBP is still chilling at around $500M TVL but the monthly volume for April is markedly lower than March’s.  But overall quite good for FraxBP with steady TVL and volume going back to the norms.

% of 3 pool

We’ve been steadily holding above 113%.  This could be a new regime in the Curve ecosystem with FraxBP being the go-to liquidity spot.

FrxETH supply and distribution

After Shapella we saw some amazing momentum on frxETH with a weekly growth of 8% this week!  We’ve been hanging around the low single digits growth for the past few weeks leading up to Shapella but now we know it was all that pent-up demand finally unleashing!

FrxETH peg

More great news on the frxETH front with a strong peg of 0.9996 on the dashboard and a 0.9995 on Curve.  This just may be the best exchange rate for frxETH to ETH we’ve seen.

Competitive landscape

Take a look at that!  frxETH has the best 30D change.  What’s even better is that frxETH’s 7D change is better than all the other competitors’ 30D change.  frxETH saw an increase of 7% in its market share, up to 1.76%.  On the yield front, frxETH is still at the top of the charts with 5% APY this week — even after the fees, frxETH is still the top.


FPI did some amazing stuff this week by increasing its equity up to $5.3M.  Recall that equity in this case is the excess above what’s needed to maintain the peg.  Additionally, the FPI treasury TVL is at $88.6M to generate that excess.


FraxLend’s supply value pretty much fully recovered from the Circle incident.  But we’re still seeing a lag in the collateral value.  Some more good news, we see that the utilization rate increased by nearly 5% this week.  Let’s take a look at the loan pairs.  The FXS/FRAX pair is printing it this week with 14% APY.  Next up, the CRV/FRAX has been printing it with a consistent 8-9% for the past few weeks now.  Also, note that the sfrxETH/FRAX pair only costs 2% APY so effectively the borrower is getting paid to borrow.


The last leg of the DeFi Trinity: the FraxSwap.  We see that the TVL is inching up to the high of $72M.  On the individual pair front, we see that FRAX/FXS is still facilitating $15M per week.


The AMO experienced a nice 1.1% bump this week, leading us to $933.2M.  The Curve and Lending AMO remained flat.  The Liquidity and Investor AMO saw an increase of about $5M each.

Revenue, Expenses, Profit

The aggregate profit for April so far is a loss of $459M.  Convex AMO racked up the largest loss so far but keep in mind that we had just paid for the Votium epoch.  On the FraxLend front, the AMO is generating about $15k per week so we’re at $45k in April.  FPI putting up great numbers at $126k profit.


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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