Yield of the Week - Lodestar
Lodestar is a money market on Arbitrum that is receiving STIP rewards from Frax. Right now you can deposit Frax to their pools and earn 21%. Plus you can use the collateral to borrow other assets to use on other pools during the STIP.
The rewards are paid out on both the supply and the borrow, so if you want to post collateral and borrow Frax, you'll earn 13.25% right now for taking a loan.
Flywheel Grant
First off, we want to thank everyone for your support of Flywheel and our continued mission to provide Frax education and outreach. 2024 is going to be our best year yet and we are proud to have built such a great community.
LENX
Frax funded LENX ran their LBA this past week on Fjord Foundry, raising $10m for their XD token. LENX, previously Renaissance DAO, pivoted to LENX after their NFT index fizzle out in 2022/3. What a comeback for a team to reinvent themselves and take on a new role in the Frax ecosystem.
XD Token Contract
— LENX (¤,X) | BTC Stablecoin & Lending (@LENX_Finance) January 10, 2024
0x3005003BDA885deE7c74182e5FE336e9E3Df87bB
UniV3 Pool is open with $3M in liquidity.
Currently, XD is paired with WETH;
the liquidity will gradually migrate to XD/FRAX
LENX's primary product is going to be xBTC, a decentralized wrapped BTC, which they have big plans for deployment on Fraxchain and BAMM. The idea will be to create this product so they can fill the role of what frxBTC potentially could have been.
Frax is hands down one of my favorite Web3 protocols.
— Stacy Muur (@stacy_muur) January 8, 2024
Could I have overlooked @LENX_Finance? No way!
Backed by the powerhouses @fraxfinance and @zetablockchain, they're bringing DeFi to Bitcoin with the first native Bitcoin liquidity protocol.
Deep dive ↓ pic.twitter.com/GXtYipZzxX
We interviewed founder John Bell this week, asking him about the LBA, plans for Fraxchain and BAMM, plus future product ideas and integrations. Give it a watch to learn everything about LENX.
For more information about LENX, read our writeup we published yesterday.
Samuel McCulloch
New VaultCraft Vaults
As Frax continues its rollout on Arbitrum and incentive distribution for the STIP, Vaultcraft has added two brand new pools for "soon" to be released pairs for GMX and WBTC.
Looking at the Frax page, the pairs aren't live yet, but VaultCraft does have their pools live and ready for when the pairs launch.
VST Rage Quit
After months of back and forth discussions on a rage quit for VST, the DAO finally approved a 20% fee for exiting the pool early. This was one of the most contentious votes we've had for the Frax DAO in a long time.
The vote that eventually passed was the third proposal proposed by the community. Originally a 0% fee had been proposed and failed, then a 7% fee met the same fate. We're happy to see this rage quit vote get over the line for those who want to unstake.
If you do have funds in the VST lock, the rage quit is optional. Even though VST is winding down, the protocol remains over collateralized. If you want to wait until the end of the lock, there will be no loss of funds other than a fee enacted by the Vesta DAO.
Fraxchain is now Fraxtal
We got word on what the production name for Fraxchain will be... Fraxtal.
Originally proposed by DeFi Dave, we now have confirmation of its market name and potential token name? We will find out more as we head into the end of January and await the launch of Frax's L2.
PYUSD Bribes for Curve
After our interview with Trident last week, they started to bribe the Frax/PYUSD Curve LP with a massive $157,000. Its incredible to see these incentives launch and entrance of PayPal into DeFi.
$157,787 worth of $FXS are coming in to incentivize the Frax/ $PYUSD pool$PYUSD incentives havent started flowing yet
— Boz 🛡️ (@boz_menzalji) January 7, 2024
On deck, LSD's will need to compete for $crv emissions@ConvexFinance still trading at ~30% discount relative to its intrinsic value as @PrismaFi locks… https://t.co/QVlb9mybM4
New Massive Curve Pool
We just noticed that there is a top new Frax pool on Curve for sDAI/FRAX. This is a pool using Frax's $30m sDAI reserves. It is POL from the Frax treasury and is now the largest Frax paired pool... and its earning 2-3% for the FraxDAO.
oh i missed that
— daesu (@0xdaesu) January 8, 2024
Frax deposited all of its pyusd & sdai paired with frax into related curve pools
now holds $135m in frax-pyusd and $51m in frax-sdai
basically all the liquidity of these pools pic.twitter.com/rfpk2vwvAS
sfrxETH Added to Eigenlayer
Introducing the LSTs: Welcome to the EigenLayer ecosystem!
— EigenLayer (@eigenlayer) January 10, 2024
@FraxFinance Ether (sfrxETH)
@0xMantle Staked Ether (mETH)
@liquid_col Liquid Staked ETH (LsETH)
Each one brings its unique edge.
Opportunities
Our $ARB STIP Incentives are still live on all vaults, until the 31st of January🦉
— Premia Blue 💎 🦉 | DeFi Options (@PremiaFinance) January 12, 2024
600,000 ARB as liquidity mining incentives to our vaults, alongside $PREMIA OLM💎$ARB, $SOL, $GMX, $MAGIC, $LINK, $WSTETH, and $FXS / $FRAX are all incentivized.https://t.co/Z47EM2o1Xp pic.twitter.com/Qwiz0bVFTi
We are partnering up with @PoisonFinance to showcase Bunni LP's collateral usage, starting with the svUSD/FRAX pool.
— Timeless Finance (@Timeless_Fi) January 11, 2024
Here's the step-by-step guide on how to gain leverage with your UNIV3 LP on #Bunni and boost rewards inside of Poison 🧵👇 pic.twitter.com/pcR13QF0Ja
High APRs. Deep liquidity. It’s starting to feel like FRAX season. @fraxfinance
— RAMSES (@RamsesExchange) January 10, 2024
Let’s break down how to extract the most value possible. pic.twitter.com/yMwmRbNTeP
🚀 Top Performing Alphadex Farm
— alphadex (@thealphadex) January 12, 2024
⚡️ Roar Farm - FRAX/USDC
📈 Get 224% APR (As of today)
💰 Alphadex Farms could be a way for you to dramatically increase your rate of return.
🙌 So make sure you don’t miss this opportunity of making passive income. pic.twitter.com/aTmnjIlqKQ
🔥 Ignite your earnings on Wombat Exchange with the epic sFRAX-FRAX-USDC pool by @fraxfinance on @arbitrum.
— Wombat Exchange 🐻🔁 (@WombatExchange) January 9, 2024
Start staking now and rake in a total reward of $2,000 in $ARB every week! Don't miss out!
🔗 https://t.co/Z0vTXVnDnr pic.twitter.com/rdUaSCfmG5
🔥 New autocompounding pool on @beefyfinance#USDPlus/FRAX/USDCe on Arbitrum with 18% APR https://t.co/aBmXF449uO
— Overnight.fi (USD+) - Vanguard of DeFi (@overnight_fi) January 8, 2024
Best of Socials
the transition to the paypool happened quickly
— daesu (@0xdaesu) January 12, 2024
the projected yield is 12% on convex (1.73x vecrv boost)
21% currently on curve with the max boost
pyusd-crvusd offers the highest yield at 40% with the max boost ($1m liquidity)
frax-pyusd's convex yield is expected around 2.8% pic.twitter.com/Dkx7MaRrDb
Bribes deposits being at ATH thanks to @fraxfinance, I wonder if we will break the 4 Million stLODE participating in the vote during next epoch...
— Waffle (@WaffleApe) January 12, 2024
In anycase, looks like the bribes are very effective, the $FRAX liquidity having trippled on Lodestar these last 3 weeks https://t.co/g9U9zTOYuM pic.twitter.com/CizIJnmrck
Hmmm how do we speculate on this upcoming Circle IPO?
— Taiki Maeda (@TaikiMaeda2) January 11, 2024
Maybe it makes sense to bid stablecoin projects that have the exact same business model like $MKR $CANTO $FXS
Bullish Yield-bearing dollars (YBDs) 🤔 https://t.co/lzdTkUN3un pic.twitter.com/VnFVYQVLah
You heard it here first
— Seraphim (@MacroMate8) January 4, 2024
FRAX/USDe pools anon https://t.co/6RDg8vYXix
I made some good change on $LDO.
— Spliffymagoo.ron 🦇🔊 (@spliffymagoo) January 9, 2024
But eventually selected $FXS as one of my core long term positions.
I think $ldo will do very well.
But Frax dudes are crazy builders, and innovate in many different sectors of Defi.
Today though, I'm sweating. https://t.co/46dkdCQ3Uw pic.twitter.com/IsP3eAnukg
Bought $10,000 more $fxs($54,000 total now spot)
— James CryptoGuru (@Jamyies) January 10, 2024
Set buy order for $7 (strong support) another $10,000
Disclaimer: Not financial advice. Trading and investing involve high risk and are not suitable for everyone. Past performance does not predict future results. Viewers are… https://t.co/GRNGUxNaie pic.twitter.com/jEp9uAPOSL
