This Week in Frax - Aug 18, 2023

HOLY MOTHER OF LIQUIDATIONS

During the filming of This Week in Frax yesterday, we witnessed one of the largest intraday moves for crypto this year. Markets were rocked when over $1bn of notional value was liquidated across CEX's. It was also Fraxlend's largest liquidations in a 24hr period as well.

We have a new liquidation winner (or loser) as anon 0x0be had their WETH liquidated for $641k dollars.

FXS wasn't spared at all, as prices rapidly dropped from $6.15, all the way down to $5.11 on Binance and $5.54 on Fraxswap. The lowest the Chainlink oracle touched was $5.41 where a poor FXS holder was liquidated with a bottom tick.

What's super interesting is that anon 0x3689c216f8f6ce7e2ce2a27c81a23096a787f532 has been liquidated for 100k TWICE in two months..... hmmm. What's going on? In their first loan, they used 103k FXS to borrow $558k FRAX. and in their second loan, they used 100k FXS to borrow $541k FRAX. 0x368 was the FIRST to be liquidated yesterday as well. We're going to leave our conspiracy hats off here...

Other notable liqudiations yesterday was 2 lots of 300k CVX total that had over $700k Frax borrowed.

Curve Finance Founder Michael Egorov still remains strong with his CRV position however.

Frax DAO to Acquire $1 million Worth of CRV

Speaking of Michael, Frax DAO voted to purchase $1m worth of CRV in what @curvecap said would be potentially "the last deal made." The vote was pushed over the line with 11m veFXS votes. Frax most likely will swap it to cvxCRV or stake it themselves to use for future gauge voting rewards for its liquidity pools.

More Frax V3 + FXB Details

Sam K posted a ton of details in the Telegram chat and leaking more info about Frax V3, Fraxbonds and more.

Sam K gave some interesting Alpha on how Frax DAO + Finres could profit from positive duration matching with FXB.

ACT figured out the strategy :)

Sam K also floated this week that FPI could be backed with FXB if inflation was lower than yields.

Also, Sam K said that the new FXB pools would enjoy a similar bribing system as to what FRAXBP has now.

Want to get in the loop on Frax v3 and FXB? We covered it in detail this week, check out our reporting.

Alpha Alert: FraxBonds, Frax v3, PYUSD Basepool and More Leaked In Flywheel Spaces

The hour long interview with Frax founder, Sam Kazemian unveiled a host of new information about the upcoming product timeline and features.

Flywheel | Your grassroots media source for DeFi cultureSamuel McCulloch

Frax’s Infinite Money Trick or How to Bring a Trillion Dollars On-chain With Fraxbonds

A round up of all information about Frax v3, how it will operate, and how Fraxbonds will allow FRAX to expand to potentially trillions

Flywheel | Your grassroots media source for DeFi cultureSamuel McCulloch

We rebranded!

Revelo Published a Token Faceoff Between RPL and FXS (Guess Who Won)

$FXS vs $RPL - Token Faceoff | Revelo Intel

Frax is a top competitor in both the stablecoin and LST verticals, two of the most popular sectors in crypto. On the other hand, $RPL is underperforming the global market & $rETH has an unsatisfactory yield rate. But $RPL fundamentals remain stronger and can only get better, accumulating an increasi…

Revelo Intel

When Will the CR Close?

Wen Fraxchain?

ACT Drops an FXB Leveraged Farming Strategy

StableScarab drops some alpha on LSDs

Six Kyber LP Gauges Went Live

Prime Protocol Adds FRAX

2000 ETH deposited to sfrxETH

Frax V2 enables permissionless DeFi validators

Frax Finance founder Sam Kazemian says an “open-ended market” is the optimal way to run liquid staking validators.

BlockworksDarren Kleine

Sam Kaz The Bell Curve Interview

If this doesn't make you bullish, I don't know what will. Sam speculated that FXS market cap (if it does all the things Sam K wants it to) will be top 5-10 in a few years and that would mean FXS to $2400. Sam K the HYPERBULL.

Sam also had some interesting thoughts around FPIS and how it might be absorbed back into FXS at a later date. It's definitely worth a listen.

Frax V2 enables permissionless DeFi validators

Frax Finance founder Sam Kazemian says an “open-ended market” is the optimal way to run liquid staking validators.

BlockworksDarren Kleine

Rex interviewed Sam Kaz on Strange Water