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 call it “we’re not down” week. We gotta celebrate the wins when we get it.
Let's begin our regular programming with the Peg. We saw it get as low as $0.997 with a high of $1.000 for the week. Peg Check = Strong. So quite bullish even with the general market drawdown. 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 0.9989 exchange rate, which is 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 drawdown, its expected that the collat % to go up and this week we stayed at the ATH level of 93.0%. Following we have the Decent %. We saw an increase of 1.5% from 14.4% to 14.6%. Slightly, tiny itsy bitsy, “we’re not down” but definitely 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 % up.
Let's jump into the AMO Holdings. We have a grand total of $674M across all the AMOs. This was an increase of nearly 1% compared to last week. Not too big of a bump but this week’s increase is attributable to Investor AMO increasing by nearly $3M and the Liquidity AMO getting $1M back. This is the AMO that manages Frax, FXS liquidity across the Uniswap, Sushiswap, Fraxswap, etc.
Onto the profits. I think the Frax team has NOT claimed their CRV and CVX rewards since we last spoke since the dune dashboard I looked at did not pull any new figures from our last Frax Check. But we were at a loss of $960k for the month of Oct, but remember that we haven’t claimed the rewards this epoch yet. So steady lads, deploying more profits.
Quick summary money check. AMO holdings was $674, +1% WoW. Slight sunshine.
Here's my favorite section of the Frax Check. The Liquidity Check. My fellow Fraximalist... we are… CLOSING IN THE GAP! We’re now 98% of the 3POOL, we were 97% last week. The FraxBasedPool is $834M versus 3pool's $854M. The basedpool saw a increase of 0.6% in TVL, while the 3POOL remained basically flat. The BasedPool is 98% of 3Pool. However, the FraxBasedPool is still much larger than the Frax3CRV pool, nearly 30% larger. Tune in next week.
Then let's transition over to the Metapools! Reminder the metapool are pools that are PAIRED with the BasedPool, examples like LUSD/FraxBP. We saw a modest increase of 1% in the Metapool this week. We’re holding firmly above $60M for the last 5 weeks. We normally see a jump in liquidity after a period of consolidation so looking forward to seeing what projects are using the metapool next.
Summary time. Liquidity Check. FraxBP is 834M which is 98% of 3Pool. The MetaPool is at $63.2, marking a 1% increase over last week.
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 0.22% at 1.361B. Hope to see more of this increase to come when FraxLend hits it strides.
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