This Week in Frax - April 13 2023

Shapella Upgrade

It's finally here, the Shapella upgrade. As to be expected, the upgrade went without a hitch, and ETH was allowed to be withdrawn. Currently there is about 1.5 million ETH waiting to be withdrawn, which is lower than some expectations. The upgrade signals a shift on the risk curve for Ethereum, as now it is confirmed that full withdraws may occur.

Additionally, Frax's picked up around 2000 ETH in the past 24 hours that was swapped to frxETH. Over the next few weeks, this number should tick higher as more and more ETH is unlocked and takes part in the "Great Reshuffling."

The next few months are going to be huge for frxETH, as more and more ETH shifts into Frax's LSD and Frax's releases V2. Thankfully, Sam dropped a bit of Alfer in the chat about what to expect for the upcoming update to frxETH.

As for withdrawals, there is nothing official posted yet by the team. If you're looking to exit, the best way is through the Curve LP. Even if you are the largest frxETH holder with 3500, slippage will be only 0.84%.

As one commentator in the telegram chat said, "LSD is coming."

Don't forget to watch our interview with Drake Evans from yesterday.

Governance

[FIP - 218] Fraxbuild Hackathon Funding

Our own defy, Dave has proposed a new grant to authorize $57.5k Worth of FXS towards Fraxbuild, the first official Frax hackathon hosted by Dorahacks. As Dave writes:

DoraHacks is a global hackathon organizer and one of the world's most active multi-chain Web3 developer communities. As a leader in the global hacker movement, Dora provides crypto-native toolkits to help developers around the world raise funding and build. To date, 30+ major blockchain ecosystems have already adopted Dora's infrastructure (hackerlink.io / dorafactory.org) for quadratic funding, community contribution, hackathon, bounty distribution, and governance of their developer communities. By far, 2200 projects in the DoraHacks community have received over $20 million in grants and contributions from supporters worldwide.

The grant will fund Frax’s first ever hackathon Fraxbuild, which will be used to create new products in support of the protocol. Continuing Dave writes:

The event will be online and hackers will have 50 days to submit their applications. The goal of this hackathon is to increase dev awareness of building on Frax, promote the creation of products and primitives that complement the Frax ecosystem of stablecoins and primitives, as well as educate developers about how they can integrate Frax into their protocols.

Flywheel is going to be a core part of the grant. As Dave writes, we will:

Act as the liaison between Dorahacks and the Frax Core Team
Promote the hackathon on our social media platforms
- Placements in Flywheel content such as Flywheel, Frax Check, and Frax in Review throughout the duration of the event
- Announcements on Social Media
Organize the hackathon itself and supporting hackers and judges when possible

[FIP - 216] Activate AMO that lends FRAX to Flux Finance

But we thought at Flywheel would be a very contentious AMO vote, turned out to be a nothing burger. The community voted with flying colors to create an AMO for Flux Finance, a lending protocol for US treasuries. Congrats to Flux for turning the tide of opinion and snagging Frax’s newest AMO.