Metronome to the Dome Week 3 Update
Update for this week is that we have made a total of $3.6 or $93.60 annualized, an 18% yield. Make sure to go check out the Smart Farming docs and see how Metronome enables you to earn yield on your FRAX.
Partner Highlight: Aark
We spoke with Ezio from Aark this week about their perpetual dex liquidity system. Unlike GMX, when users deposit their FRAX in Aark, they can retrieve their original FRAX plus any accrued fees, you don't get back a mixture of assets. You can deposit Frax with a current APR of 25-30%.
In our interview Ezio explained how their margin system works and earns fees. He also told us that they will be adding sfrxETH shortly as a collateral asset and how they will be taking part in the Arbitrum STIP program.
The Bottom is In. Bring on 2024.
The biggest news of the week is the rampant fervor surrounding the upcoming approval of one or many Bitcoin ETFs. The addition of the first spot bitcoin regulated product will radically change how the majority of investors get exposure to crypto. No longer will you need to simply buy and hold on an exchange, soon you'll be able to put Bitcoin in your brokerage account, IRA, retirement portfolio, etc. All with a click of a button.
Once the Bitcoin ETF is approved, billions of dollars of new capital will flow into the largest digital asset. The chart above shows inflows into gold over the past 20 years since the launch of the first gold ETF. Slowly at first, then rising in a linear fashion, gold ETFs have attracted close to a trillion dollars worth of capital in two decades. Expectations for Bitcoin should be similar.
Investor sentiment is starting to shift bullish as a result. SBF is going to jail soon, BlockFi exited bankruptcy this week, and many other fraudulent crypto companies are now wiped off the map. Nature is healing markets just in time for the Bitcoin halvening, potentially starting another 4 year cycle.
By all accounts the stablecoin market has reached a bottom. Over the last month the total market cap of all stablecoins is flat. Decentralized stablecoins are starting to grow slowly again, with DAI seeing inflows and crvUSD reaching $100m total supply. The market is poised for growth and no other protocol is as prepared as Frax.
Over the last 18 months of this bear market since UST collapsed, Frax has endured every major blow the market could throw at it. Frax has not only survived, we've thrived during this period, releasing a flurry of new products sfrxETH, FPI, frxGov, FXBs, and more. And that's only for this year. In 2024 and beyond Fraxchain, BAMM, and other products will define the protocol as we potentially enter in a new market structure.
FXB's on Test Net
Travis dropped the new FXB contract in chat for us this week after they deployed a test contract on Polygon.
The contract has a few interactions so far, but its deployment onto a public, open blockchain shows the final product for Frax v3 is almost ready to go live.
We Interviewed Sam Kazemian About Arbitrum STIP
If you haven't migrated to the new contract yet, your rewards will end this week. There is no risk to leaving funds in the contract, you just will stop earning rewards. You can migrate on the Frax website.
Pendle Adds sFRAX
Pendle added sFRAX as a collateral asset and is providing boosted LP rewards for providing liquidity. As of writing this, the unboosted APY was 14.46%.
Equilibria Adds sFRAX
Whitelisting sFRAX and FXBs as FPI Collateral
We wondered about this last week on Frax Check, how Frax should be using sFRAX to arbitrage the rate difference between FPI and sFRAX. We got our answer this week when the Frax Core Dev Team dropped a new FPIIP to allow for sFRAX and FXBs to act as collateral for FPI. Yay.