"On The Edge" - FraxCheck #37

This week... I call this week the “On The Edge” week. As the name suggests, this week we're peering over a cliff and we don't like it.

May 3, 2023


  1. 1.00B FRAX // Stablecoin Supply (∆ -3.3%)
  2. 124% of 3Pool // FraxBP TVL (∆ +2.0%)
  3. $393k Profit for April // Aggregated Net Income Across All AMOs

Frax Supply & Peg

We are on the edge of the billion-supply cliff.  We are $40M away from losing our third comma.  Out of all the metrics we track here at Frax Check, this is the utmost important one.  Every effort and initiative is to increase this metric.  We have work to do.

Collateralization & Decentralization Ratios

Though some bright news is that the peg remained quite tight on the dashboard, showing a range of $1.001 to $0.998 — this is the norm.  In the markets, we swapped 100M FRAX for USDC and received an exchange rate of 0.9987.  These are tight ranges and fair exchange rates.

The Collateralization Percent hit a new all-time-high of 94.8%!  We are inching our way to 100.  On the Decentralization Percent side, we’re not doing too well.  We’ve been slowly bleeding down to 20.8% this week, a decrease of 50 bps from last week.


Let’s counterbalance some bad news with good news here.  FraxBP printed a solid 2% gain this week to $509M in TVL.  For April, FraxBP facilitated $55M in volume, equating to about 11% utilization rate.  Not too bad but markedly lower than that of March’s which was $210M.

% of 3 pool

More good news!  We hit an all-time high of 124%.  We are firmly in a new regime now.  With FraxBP as the dominating base pool and FraxPP in the wings, Frax is truly integrating well with the Curve ecosystem from the governance down to the product level.  FraxBP is at $509M, 3Pool is at $412M, and FRAX3CRV is at $291M.

IQ Staking

Here we have a new segment of our show where we take a look at IQ aka BrainDAO!  Thanks to a recent grant passed by the BrainDAO community we will be covering their ecosystem for at least the next 3 months. But before we dive into the staking portion, let’s get some fast facts.  There’s a highly flexible locking system that ranges from as low as 1 week to 4 years.  Similar to Curve, if the lock is for 4 years, the voting power is quadrupled.  Though there is a linear decay in voting power!

The staking page for BrainDAO can be found here.  The current APR is 128% for single-sided IQ staking.  There are only 176 stakers so far on Ethereum but there are over 1700 holders.  Come stake some IQ y’all!

Aside from the high APR, the main reason to stake IQ is to control the treasury, which is at $15.6M.  The largest holding is sfrxETH at $5.3M, 34% of the treasury.  We love to see another DAO holding large portions of frxETH and FRAX on their balance sheets.

FrxETH supply and distribution

Up only!  We have 169,146 frxETH, an increase of 6.3% from last week.  60% of these frxETH is in sfrxETH, 31% is in Curve LP, and the remaining 9% is floating around earning yield across all of DeFi.  Go check out Sam’s post on where all the floating frxETH is hanging out here.

FrxETH peg

Strong peg.  The dashboard peg shows a 0.9991 exchange rate and the curve swap exchange rate is just a hair under at 0.9990.  We like to see this.

Competitive landscape

Congrats to frxETH for breaking into the 2.00% club!  We are making our way up the charts.  We grew at a fairly quick pace for April with about a 32% change.  Though we weren’t the only ones, Rocket Pool also got some love and also increased by 31% in April, while we see that cbETH has its first monthly decline of 0.69%.

We reclaimed the top of the yield table.  FrxETH is earning 6.55% whereas the closest competitor Ankr is earning 5.74%, with Lido and Rocketpool in the bottom at 4.6% and 4.9%, respectively.


Here comes the FPI!  Though there aren’t much movement in the supply and the cap.  It’s important to track the equity of the FPI.  Here we have $4.5M in equity, which means there’s an excess of Assets when compared to the Liabilities on the balance sheet.  If FPI were to fold tomorrow, then that $4.5M is distributed across all the FPIS (or veFPIS).


TVL is slowly growing on Fraxlend.  We see that the collateral value is still much lower than where we were before the USDC depeg.  The utilization rate has also been hovering around the 60s; we want to see this in the high 70s to 80s.  Though, the borrowed value has nearly recovered.


AMO is at $816M, down 50 bps from last week.  The change came from the Liquidity and Investor AMO each shedding $3.9M and $1.7M, respectively.  No changes to the Curve and Lending AMOs.

Revenue, Expenses, Profit

We believe this is the first time we’ve seen the Convex AMO in the green since “No-Profit-November” last year.  Here we have $130k in profits for April.  Though, this is quite a fortuitous month as the bribe payment fell on May 1st so we didn’t have to bear the cost in April.

In the Fraxlend AMO, we increased 4.5M FRAX across the Fraxlend pairs.  We’ve generated $81k in revenue for April.  This is about $21.4k on avg per week.  We also had a small $121 profit from liquidations, and frankly, we want this number to be near zero so good job everyone for staying safe out there.

FPI’s April revenue hit $182k.  That’s all that needs to be said.

The aggregate profit net income for April is $393k.  Mic drop.

And that’s it for this week’s Frax Check!  See you next week!


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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