Welcome to Frax Check. Your weekly frax vibe check. I am your host Kapital_K and 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 flywheelcrypto, it really does help! Please also follow us @flywheelcrypto on Twitter and tg.
This week.. I call this week the “Just Keep Swimming” week. I know the price action has been cray cray this week but, on this show, we don’t talk about that and I’m here to keep us grounded. So, let’s just keep on swimming, and dive into our regular programming.
As always we start with the Peg. We saw it get as low as $0.998 with a high of $1.002 for the week. Peg Check = Strong. We then looked at Curve via swapping 100M FRAX for USDC. We received a 0.9983 exchange rate. This is 4 bps better than last week. So, both metrics pretty much unchanged or slight improvement. Moving on we have our Collateralization %.
This is the % that conveys how much FXS (algorithmic) is used as collateral. We remained unchanged for the week still at 92%, it’s been this way for a 2-3 Frax Check now. Following we have the Decentralize %. Two weeks ago, we saw a big reversal jumping by more than 55% but this week, we’re up 2.2% from last week’s 22.55 and sitting pretty at 23.0%. Still 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. But I’m hopeful.
Okay. Quick summary Health Check. Peg Good. Curve Swap unchanged Collat % could be better been stagnant. Decent % may be in a reversal to the upside.
Next, we have our FrxETH segment. As always, we check the peg. Peg check here is strong you see the price delta is only 0.0011 between frxETH and ETH – slight deviation from last week. But, we obvs have to go into the market and check this ourselves and you see here that I tried to do a 3500 ETH swap which is roughly the amount of the largest frxETH holder and I get an exchange rate of 0.9979. That’s not too shabby, down about 7 bps from last week. Also, last week we had 51.2% of the frxETH staked in the Curve pool, and now we’re up small to 53.0% of the supply inside curve. And also let’s just note the TVL in here, we’re about to break $100M. 9 FIGURES baby. The APY as per Convex is at 6.5% projected versus 6.69% for sfrxETH. The market here is so dam efficient, I love it. Let’s see what the count looks like this week.
The count is at 62,954. And look at that chart, I know you can’t read it but just appreciate the verticalness off that graph. +24.2%. Hot. Last week I said the LSD narrative floating around is going to be a catalyst for more deposits and lo’ behold. We up another casual 12k ETH deposits. I don’t always pat myself on the back but sorta called this one. On the staked side we see that the staking rate dropped by 9% this week down to 43.5% from 47.8%. The sfrxETH is earning a cool rate of 6.69% -- very nice.
We have a new slide here where we layout the LSD market landscape. Obvs, we have Lido in the lead with 29% of the market but you can see here that Frax REAMAINED the highest 30-day delta in the group, at +43% so far. The massive pump deposits this week led to a 23% increase in market share for frxETH, which sits at 0.32%. We boutta’ flip Ankr Staking fr fr. Let’s keep fighting the good fight and pump up these rookie numbers! Now, 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 $1030.9M across all the AMOs. This was a good up move of 2% from last week. With the market up and bumping, obvs the Investor AMO got a nice boost, up $10M and the Liquidity AMO got a nice boost too up $12M-ish. The Curve & Lending AMO remained the same so things are quiet on the AMO front.
Onto the profitability of the Convex AMO. For the month of January so far we have $720k in revenue and $1.17M in expenses. As you can see, most of our revenue comes from CRV rewards, magnitudes larger than the CVX and FXS rewards. With a net loss of $450k to start our 2023. We have another bribe to pay next week and then hopefully 2 rounds of rewards so we just may end the month down small or fingers crossed, break even.
Quick summary money check. AMO holdings was $1030.9M, +2.0% WoW. Profitability, for January so far is subpar but I remain hopeful until the end of the month!
Here's my favorite section of the Frax Check. The Liquidity Check. Do you guys remember the theme of this week, it was “Just Keep Swimming”. Well, in this specific segment, we SWIMMING up baby. We’re up 4% pushing us solidly into the mid 80s and we’re rocking a strong 86% of the 3pool. The FraxBasedPool is $489.5M versus 3pool's $569.1M. The basedpool is up small 0.1% for the week. But what’s important here is that the 3POOL went DOWN by a good chunk almost $30M. Note that we are STILL above the Frax3CRV pool!!! Let’s keep the momentum going. Stepping stones, 3Pool next. Moving on, let’s chat about our metapools.
Reminder the metapool are pools that are PAIRED with the BasedPool, examples like LUSD/FraxBP. We’re at $49.3M, an increase of 8.3% from last week. But we just can’t seem to break above the $50M level for the past 8 Frax Checks. C’mon people, we got some yield and liquidity for your community, so come and get some! Any projects out there looking to work with the Metapool, please join the Flywheel TG chat and DM any of the hosts for assistance.
Also one quick note, we also have an additional $15M of TVL from non-stable pairs in the Metapools. These are pairs like cvxfxs/FraxBP and cvxcrv/FraxBP. That is a bigly jump of 28% over last week. Glad some of y’all at home are joining us for this sweet-sweet yield and liquidity or it could just be the market pumping so these TVLs are up. I choose to believe that we’re making an impact so let’s go with the former. So, adding all of the stables and non-stables TVL, we have a total of $64.3M of liquidity paired against FraxBP – up 12.4% this week.
Summary time. Liquidity Check. FraxBP is 489.5M which is 86% of 3Pool. The MetaPool is at $49.3M for stable pairs and $15.0M for non-stable pairs. And TVL of All pairs (stables + non-stables) are at $64.3M.
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 1.018B, which is unchanged for the last 3 weeks. We’re flirting with that 9-figure digit line, and I don’t like it. We need to keep our eyes on the prize and grow this number.
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