This Week in Frax - April 5, 2024

Apr 5, 2024

Welcome to Flywheel, the best place for Frax education, analysis and alpha. We write about Frax and its DeFi partners bringing you the most up to date info straight to your inbox.

What's in This Email

Fee Switch Activated!
Frax Deploys on Cosmos
Coingecko Highlights sfrxETH
Alchemy Offers Account Abstraction on Fraxtal
Conic Adds Frax Ominpools
Frax Now Available on Blast
Governance

Earn 20% extra Kelp Miles (along w/ Eigen Points) using our link 🧜‍♂️

Fee Switch Activated!

Fee switch has been activated! Now veFXS stakers have started earning nearly $400k of fees this week.

Keep in mind, this is in addition to a similar amount of revenue that goes into the FXS Liquidity Engine (buying back $FXS & adding to protocol owned liquidity). 🚀 https://t.co/BUJuMfZBCd
— Frax Finance ¤⛓️¤ (@fraxfinance) April 3, 2024

After more than 2 years, Frax has turned the fee switch back on! $400k was added to the distribution contract for veFXS, marking one of the highest payout periods in Frax's existence.

Frax isn't even on these charts yet. No one knows how much money the protocol is even making. https://t.co/QA3EE0qEHt
— Westwood.eth 🦇 🔊 (gm, gm) (@WethWood) April 5, 2024

Turning the fee switch back on now adds a new layer of value to FXS. Hopefully we start to see new FXS locked as veFXS over the coming months and also the Convex peg returning to 1:1.

On June 13 2023, MKR price was $633. Buybacks began one month later and price was $923. Forward to today and MKR is $3724.

Frax buyback voting ends today. Price is $7.56. What will it be in one month? What will it be in 8?
— Westwood.eth 🦇 🔊 (gm, gm) (@WethWood) March 30, 2024

Based on other protocol's, FXS most likely will experience positive price adjustments now that it's yielding. At current rates this is 13.35% with a max lock, and given that Frax is about to add $250m of FRAX to Ethena's sUSDe, this figure might double. Exciting times ahead.

Frax Deploys on Cosmos

🎨 Ethereum IBC Launch: @Fraxfinance / @osmosiszone Pools Powered by Picasso

🤝We are excited to announce an initiative between @fraxfinance and @osmosiszone leveraging our@Ethereum @IBCprotocol connection for cross-pollination. This collaboration opens up unparalleled… pic.twitter.com/8s8YhpLBHv
— Picasso 🎨 (@Picasso_Network) April 5, 2024

Frax and Noble are teaming up to deploy into the Cosmos ecosystem. This collaboration will bring FRAX and sFRAX across to the Cosmos network, comprising more than 80 interconnected blockchains. Noble is also the issuer of USDC within Cosmos and will now host Frax's stablecoin offerings natively.

Alchemy Offers Account Abstraction on Fraxtal

AA is coming to a Superchain near you!@alchemyplatform now offers its Account Abstraction product suite for @ourZORA and @fraxfinance. Plus @base and OP Mainnet are already supported✨

Start building AA on Frax and Zora today with Alchemy Read the docs ⬇️ pic.twitter.com/u6mWP3zqpT
— Optimism (@Optimism) April 5, 2024

Conic Adds Frax Ominpools

$FRAX & $USDT - Now live on https://t.co/bhiDfVsPF4 pic.twitter.com/APrCVoL4EZ
— Conic Finance (@ConicFinance) April 2, 2024

Frax Now Available on Blast

Frax is now officially on @Blast_L2! 💥

We teamed up with our friends at @ThrusterFi & @hyperlockfi to make sure sFRAX & sfrxETH are the first cross-chain yielding assets available on Blast. LP to earn triple points, double yield, & more rewards soon. 🤯
Bridge to Blast:… pic.twitter.com/TqA9gN8mJ4
— Frax Finance ¤⛓️¤ (@fraxfinance) March 29, 2024

Governance

A massive new AMO proposal from the Core Team dropped this week, as they have recommended a $250m cap for sUSDe and USDe LPs on Curve. This would be the two largest AMO's ever voted on in Frax's history and would potentially bring significant revenues to the protocol.