This Week in Frax - May 19, 2023

Hourglass, recruiting and building the team, 200k frxETH and more!

Samuel McCulloch
Samuel McCulloch
May 19, 2023

Hourglass launch

Friend of Flywheel Hourglass launched their new protocol functionality for creation and trade of Time Bound Tokens.

Make sure to check out our interview with Charlie Pyle from a few weeks back where he gave us the low down on Hourglass, its functionality and how he thinks it’s going to benefit DeFi as a whole.

SamKAzBot Lives!!

We’re so back! Flywheel has taken over SamKazBot a few months back after Elon broke the Twitter APIs. With a little help we rewrote the code and redeployed it!

SamKazBot relays all of SamK’s messages from the Telegram chat. The best marketing is TG marketing. Welcome back!

200,000 frxETH broken!

Whale swaps $5.5m stETH for sfrxETH

Are lack of full withdrawals an issue?

HashHerald brought up the point that Frax has no plans to offer full withdrawals. The only way to exit frxETH is through the Curve LP. His argument is that if there ever was a significant issue, the pool could depeg and “users would be left stranded.”

The issue with this argument is two fold. First, if there ever was a depeg, arbitraguers would most likely buy the discounted assets with the expectation that the peg would be restored. Second, if the depeg lasts long enough, Frax can simply wait until the ETH is unstaked and then close the gap themselves, profiting on the discount.

So in both situations, short and long term, the frxETH peg would be restored.

On Herald’s comments about the high APR, it’s a function of Frax splitting demand between the Curve LP and the sfrxETH vault. StableScarab made a handy flow chart showing the two main paths for frxETH.


Should Frax use a hiring agency?

Telegram user Milan asked why the Frax Core Dev team only has 8 people and why don’t they work with recruiters to expand the team quicker. Milan proposed that Sam K use a few hours of his schedule each week to conduct interviews.

We’ve talked about the team size before. Notably in our latest podcast with Ken Deeter, he specifically said that quality and time to ship is one of the primary reasons he loves Frax.

The larger the team gets the more bloat. Frax wants to stay lean and not depend on a legion of middle managers to slow the development process down.

Crvusd interface is live, sfrxETH only collateral

The crvUSD UI is now live for the public! Mint up to 10m crvUSD with the newest self-liquidating loan.

Watch  and Sam explore the new UI on a recent episode of Leviathan News.

Also Frax deposited some sfrxETH and borrowed crvUSD.

A great post about frxETH from StableScarab

Stable scarab tweeted a long examination of frxETH.

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