This Week in Frax - November 10, 2023

Prisma Wars, Metronome to the Dome Week 5, Timeless Finance interview, Aave and sfrxETH!

Samuel McCulloch
Samuel McCulloch
Nov 10, 2023

Metronome to the Dome Week 5

We're 5 weeks in this year and our total for the time is $21.32, which translates to a 44% yield! A new high for this Metronome Smart Farming process! We're super excited to see how this leveraged farming play has panned out.

Partner Profile - Timeless Finance

On this week's episode of This Week in Frax we had on MajeStyle from Timleess to talk about their upcoming v2 launch and its impact for Frax.

Timeless Finance enables yield tokenization by splitting user deposits into two types of tokens: Perpetual Yield Tokens (PYT) and Negative Yield Tokens (NYT). PYT holders receive the yields generated from the deposits, while NYT values move inversely to PYT. 

Timeless allows users to boost yields, hedge yield volatility, and speculate on yield rates.


Prisma Wars Kick Off

Prisma Wars and “DropLock” - Cryptovestor’s Alpha Corner #6
Get the latest DeFi podcasts, newsletters, hackathons & IRL events straight to your inbox.

This week the PRISMA token we live as the stablecoin protocol topped $250m TVL in a short few weeks. The long awaited project is an upgrade to Liquity, by adding LSD support and also DAO-adjustable protocol parameters, like the ability to tune interest rates.

Yields have been hot for PRISMA supported Frax assets. These first 4 weeks will be the highest yielding portion of token distribution, with 2,25m Prisma tokens doled out. The Convex mkUSDFRAX BP still has boosted rewards of up to 35%, making it one of the most attractive farms in DeFi right now.

Binance FXS Dump

Notice of Removal of Spot Trading Pairs - 2023-11-10 | Binance Support
This is a general announcement. Products and services referred to here may not be available in your region. Fellow Binancians , To protect users and maintain a high quality trading market, Binance…

On Thursday morning Binance sent out an announcement that it was delisting FXS /BUSD shortly. BUSD is the SEC charged stablecoin which Binance has been forced to wind down due to mishandling and undercollateralization.

Someone must have panic sold after reading the news, as the price of FXS/USDT, which is the main trading pair for FXS with no plans for delisting, dumped on Binance down 30% to to $4.78. On-chain assets were safe from the dump, as Frax uses Chainlink for its oracle service. It's price only declined to $6.01, more than a dollar difference.

Frax Misses in EigenLayer Voting

Frax barely missed the vote for Eigenlayer integration this week, with several smaller LSD's making the cut before us.

sFRAX proposal to add to Frax Ferry

Screenshot 2023-11-08 at 7.58.20 AM

The Frax Core Team proposed to add sFRAX to FraxFerry for Arbitrum, Optimism, Polygon zkEVM, BSC, and Avalanche.

Aave Remembers Frax

ARC Proposal: Onboarding sfrxETH from Frax Protocol to Aave V3 Ethereum Market
it has been de-prioritized due to a need a price oracle adapter (and CL price feed in the first place) it could theoretically be implemented now, but lack of strong demand never allowed it to come back into the heavy to-do list. After all this time, I’d suggest a reboot via a new TEMP CHECK

Frax potentially will have sfrxETH added to Aave in the future as we now have a Chainlink oracle. When this original vote passed, we didn't have it yet and the Aave DAO put it on the back burner. Sam K hopped in to the post this week and wrote:

Hey @MarcZeller!

Hope you are well sir. I wanted to jump back in here and chime in on sfrxETH being included on Aave. I’m not sure if there’s actually a lack of demand or if both communities are just waiting in limbo for Aave to include sfrxETH.

For reference, sfrxETH has had a Chainlink rate oracle for a few months now so that requirement which was the bottleneck before has been cleared a while ago.

Also, in terms of the demand question, sfrxETH is extremely popular collateral on crvUSD and also the largest Fraxlend pair bay far with over $85M used to borrow FRAX: Frax Facts 2

I think there’s more than enough demand and we’d be happy to promote its usage on Aave if the process for listing is restarted. I think there might just be miscommunication here or misunderstanding that there is no oracle or demand. I’d be happy to help in any way personally to answer any questions.


Marc Zeller responded that this was great and we should apply for a new TEMP CHECK. We will keep you up to date on what happens with this outcome.

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