Metronome to the Dome Week 3 Update
![](https://flywheel-2.ghost.io/content/images/2023/10/Screenshot-2023-10-27-at-12.12.03-PM.png)
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.
![Gold market saw record ETF inflows in 2020 - WGC | Kitco News](https://www.kitco.com/news/2021-01-13/images/WGCETFs2020.png)
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.
![](https://flywheel-2.ghost.io/content/images/2023/10/telegram-cloud-photo-size-2-5321500935882658084-x.jpg)
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
![](https://flywheel-2.ghost.io/content/images/2023/10/sticker.jpeg)
Travis dropped the new FXB contract in chat for us this week after they deployed a test contract on Polygon.
![](https://flywheel-2.ghost.io/content/images/2023/10/Screenshot-2023-10-26-at-1.27.47-PM.png)
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
.@fraxfinance's Role in the @arbitrum Short Term Incentive Program
โ FlywheelDeFi.eth (@FlywheelDeFi) October 26, 2023
We spoke with core team member @samkazemian to take a look into how Frax aims to leverage its brand to attract new users and assets to @arbitrum ๐ค
Lets dive in ๐ pic.twitter.com/dKWhFdTiVm
sFRAX migration
![](https://flywheel-2.ghost.io/content/images/2023/10/Screenshot-2023-10-26-at-1.29.33-PM.png)
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.
Integrations
Pendle Adds sFRAX
![](https://flywheel-2.ghost.io/content/images/2023/10/Screenshot-2023-10-26-at-1.31.54-PM.png)
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
Hi, fellow #๐๐๐ enthusiasts!
โ Equilibria (@Equilibriafi) October 26, 2023
๐๐ ๐๐ซ๐ ๐๐ฑ๐๐ข๐ญ๐๐ ๐ญ๐จ ๐๐ง๐ง๐จ๐ฎ๐ง๐๐ ๐ญ๐ก๐๐ญ ๐ญ๐ก๐ ๐ฌ๐ ๐๐๐ ๐ฉ๐จ๐จ๐ฅ ๐ข๐ฌ ๐ง๐จ๐ฐ ๐ฅ๐ข๐ฏ๐ ๐จ๐ง ๐๐ช๐ฎ๐ข๐ฅ๐ข๐๐ซ๐ข๐!
Don't miss out on this opportunity to earn stacked rewards:
๐ฅUnderlying yield
๐ชPT yield
๐Boosted PENDLEโฆ pic.twitter.com/v7hC3eInzI
Governance
Whitelisting sFRAX and FXBs as FPI Collateral
![](https://flywheel-2.ghost.io/content/images/2023/10/Screenshot-2023-10-26-at-9.12.05-PM.png)
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.
Ramses Requests a FXS gauge for CL FRAX/USDC
![](https://flywheel-2.ghost.io/content/images/2023/10/Screenshot-2023-10-26-at-9.10.09-PM.png)
JPEG'd Requests pETH-frxETH to FXS Gauge Controller
![](https://flywheel-2.ghost.io/content/images/2023/10/Screenshot-2023-10-26-at-9.10.37-PM.png)
Threads & Announcements
ASXN Publishes FRAX Research
1/
โ ASXN (@asxn_r) October 24, 2023
Frax v3 marks @fraxfinance's entrance into RWA & enables Frax to allocate collateral through a full business cycle.
A short overview of sFRAX: pic.twitter.com/zhCf0krByb
Zaros Wrote a Great Thread About Frax
@fraxfinance is a well-known DeFi giant, notably credited for pioneering the concept of a fractional stablecoin.
โ Zaros (@zarosfi) October 26, 2023
Last year, the protocol unveiled sfrxETH, a liquid staking token.
Naturally, we've been watching them closely and won't miss out.
Zaros <> Frax: a thread ๐งต pic.twitter.com/pkdJ1nWadC
BrainDAO Acquires $2.1m sFRAX
We are excited to announce that the BrainDAO treasury has acquired 2,100,000 sFRAX through @fraxfinance's ERC4626 staking vault.
โ IQ.wiki (@IQWIKI) October 27, 2023
The yield from the Staked FRAX vault is primarily derived from real-world asset (RWA) strategies.
The BrainDAO development team is actively workingโฆ pic.twitter.com/OX4QrHJYe3
Grils with a Awesome Thread on frxETH
6.4% apr on $frxETH while other competitor LSD providers range around 3-4%.
โ Grills (ยค,ยค) ๐ฆ๐ (@CryptoGrills) October 26, 2023
Imagine not staking your $ETH through @fraxfinance.
The dual token strategy wins the long game. The flywheel spins on.https://t.co/fhLzHooZv5$FXS $CRV $CVX pic.twitter.com/ym1pfcLGHx