Welcome to Frax Check. Your weekly frax vibe check. I am your host Kapital_K and I’m joined by 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 this week the “New Year New Me” week. We have some potential trend reversals. If you recall, for the last few Frax checks we’ve been ranging with some ups and some downs but mainly unchanged.
Let's begin our regular programming with the Peg. We saw it get as low as $0.996 with a high of $1.001 for the week. Peg Check = Strong. We then looked at Curve via swapping 100M FRAX for USDC. We received a 0.9979 exchange rate. So, both metrics pretty much unchanged. Moving on we have our Collateralization %.
This is the % that conveys how much FXS (algorithmic) is used as collateral. We actually decreased (which is a good thing) by 1.4%, which gives us a Collat % of 92%. This was the first reversal we’ve seen in a long time but fingers crossed that this is actually a reversal. Following we have the Decentralize %. Here we see another potential trend reversal but much much more bigly. We have a 55% increase since the last Frax Check and if you zoom in you could see that vertical spike up. We’re currently at 22% for the Decent %. 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 gosh darn it, I am excited with these two reversal moves.
Okay. Quick summary Health Check. Peg Good. Curve Swap much better this week. Collat % could be better. Decent % may be in a reversal.
Next, we have our FrxETH segment. As always, we check the peg. Peg check here is strong you see the price delta is only 0.0009 between frxETH and ETH. Pretty much unchanged 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 0.9969. That’s not too bad. Also, last week we had 61.3% of the frxETH staked in the Curve pool, and now we’re down to 50.5% of the supply inside curve. The APY as per Convex is at 9.65% projected versus 7.94% for sfrxETH. Littttt. Let’s see what the count looks like this week.
The count is at 47,149. And look at that chart, I know you can’t read it but just appreciate the verticalness off that graph. +12.1%. Hot. It may look like we’re tapering a bit but let’s see if we resume the uponly action next week. On the staked side we see that 49% of all the frxETH is being staked to earn the ETH native staking rewards, which is projected at the 7.94% -- very nice. 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 $1004.7M across all the AMOs. This was a MASSIVE change. We increased by 83.3%. The Curve AMO increased by $250M. And the Liquidity AMO by $10M and Investor AMO by $130M and Lending AMO by $50M. Where did all these assets just come from? For the Investor AMO, I think its from the FPI/FRAX POL, but we need to confirm that. The bump in the lending AMO is from FraxLend. The change in the Curve AMO is quite normal as the POL in that AMO is quite large.
Onto the profitability of the Convex AMO. Though, not everything is super rosey. For the month of December we have $1.37M in revenue and $2.01M in expenses, which gives us a net loss of $650k. We ended the year down quite a bit here but it was expected with the launch of frxETH and the cost to grow that business unit. But it’s 2023 now so let’s keep our hopes up. Upward and Onward champs.
Quick summary money check. AMO holdings was $1004.7M, +83% WoW. Profitability, for December was down bad but we’re in 2023 now so eyes forward!
Here's my favorite section of the Frax Check. The Liquidity Check. Do you guys remember the theme of this week, it was “New Year New Me”. Well, unfortunately here, we don’t see any changes. We’re still at 77% of the 3POOL. The FraxBasedPool is $463.6M versus 3pool's $605.9M. The basedpool down small 3.5%. But Note that we’re still NECK-to-NECK with Frax3CRV pool again. Let’s first flip this then we set our eyes on the 3pool. 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 breaking above! We’re at $47.8M, an 8% bump from last week. 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 $10.2M of TVL from non-stable pairs in the Metapools. These are pairs like cvxfxs/FraxBP and cvxcrv/FraxBP. The non-stable pairs TVL dropped a little down from 12.8M last week. So adding all of the stables and non-stables TVL, we have a total of $58M of liquidity paired against FraxBP – relatively unchanged.
Summary time. Liquidity Check. FraxBP is 463.6M which is 77% of 3Pool. The MetaPool is at $47.8M for stable pairs and $10.2M for non-stable pairs. And TVL of All pairs (stables + non-stables) are at $58.0M.
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 from last week. 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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