Welcome to Frax Check. Your weekly frax vibe check. I am your host Kapital K. As always, I'm joined by our producer extraordinaire Sam, Dave is traveling today so Sam will take on the gov check for us. 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 call this week the “Capital J, Capital F, Capital C. JFC” week. You’ll see what I mean. Actually, you guys may have already felt it.
Let's begin our regular programming with the Peg. We saw it get as low as $0.996 with a high of $1.000 for the week. Peg Check = Strong. We then looked at Curve via swapping 100M FRAX for USDC. We switched it up since the FraxBP is now larger than the Frax3CRV. We received a 0.9912 exchange rate, which is a decrease of nearly 80 bps compared to last week’s. We saw a MASSIVE outflow of USDC from the FraxBP over the week and I must say, I’m impressed with the swap rate. Though, losing 80bps isn’t great cuz that’s still $800k in a $100M swap. Moving on we have our Collateralization %.
This is the % that conveys how much FXS (algorithmic) is used as collateral. I want to highlight the collateral ratio for the OUTSTANDING FRAX aka non-Frax controlled. A reminder, Frax protocol owns a lot of its own FRAX and theoretically, Frax won’t ever redeem its own underlying collateral backing so the only real collateral ratio we should monitor is that of the OUTSTANDING FRAX, which currently sits at 87.4%. Following we have the Decent %. We are at another ATL of 12.9%, which is an 8% drop from last week’s Frax Check. V v v 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 mmmmm. Collat % could be better. Decent % new ATL.
Next, we have our new segment of the check where we look at FrxETH. As always, we check the peg. But before that, quick shoutout to the homie Struct3r who built this dashboard. Frax community is the coolest. Join us in telegram @flywheelpod on telegram. So let’s dive in. Peg check here is strong you see the price delta is only 10 bps between frxETH and ETH. We obvs have to go into the market and check this ourselves and you see here that I tried to do a 800 ETH swap which is about $1M and I get an exchange rate of 0.9956. That’s not good. Also, last week we had 42% of the frxETH staked in the Curve pool, and now we have 38% of the supply inside curve. Let’s see what the count looks like this week.
The count is at 5,979. And look at that chart, I know you can’t read it but just appreciate the verticalness off that graph. +12%. Hot. On the staked side we see that 62% of all the frxETH is being staked to earn the ETH native staking rewards, which is 5-7%. As mentioned last week, the flywheel is going to be turned on and we see some signs of that this week. The APR is at 8.5%, which is slightly above what the native ETH staking yields are. FrxETH flywheel has been slowly turning with a tiny bribe on Votium. Let’s do a quick summary check.
Peg check strong. Curve swap strong. Count up only. Staked healthy.
Let's jump into the AMO Holdings. We have a grand total of $423M across all the AMOs. This was a decrease of 30% compared to last week. PAIN. The Curve AMO decreased $150M+ and the Liquidity AMO dropped by $10M.
Onto the profitability of the Curve AMO. We’re now at $0.97M in Revenue for the month of November. We paid roughly $1.28M in bribes so far plus about $430k in expenses, our profit is at a loss of $740k. I expect this to be our first down month. RIP November.
Quick summary money check. AMO holdings was $423M, -30% WoW. Profitability, we’re down $740k, though I expect us to be at a loss for this month in November. So lets see how November fairs.
Here's my favorite section of the Frax Check. The Liquidity Check. Do you guys remember the theme of this week, it was JFC. We’re at 74% of the 3POOL. JFC. The FraxBasedPool is $467M versus 3pool's $628M. The basedpool saw a decrease of -36.8% in TVL. But what’s more troubling is that there’s an imbalance in the FraxBP pool right now of nearly a 25/75 split between USDC/FRAX that needs to be rectified. So expect the FraxBP to decrease a bit. Moving on, let’s chat about our metapools.
Reminder the metapool are pools that are PAIRED with the BasedPool, examples like LUSD/FraxBP. We pretty much retraced all of our momentum for the last 4 weeks. We’re currently at $67.7M, which is a 27% decrease WoW. 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 $12.3M 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 $80M of liquidity paired against FraxBP, 28% decrease, down bad. Please resume uponly next week please!
Summary time. Liquidity Check. FraxBP is 467M which is 74% of 3Pool. The MetaPool is at $68M for stable pairs, marking a 27% decrease over last week. And TVL of All pairs (stables + non-stables) are at $80M.
Lastly, the main reason why we track all of this is to make sure the FRAX supply could grow as big as possible. This week we're at 1.179B, which is a 3.6%. We need to keep our eyes on the prize and grow this number. But expect this number to go down a bit from us rebalancing the Curve AMO and the FraxBP.
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