To $PyUSD or not to $PyUSD? - Cryptovestor's Alpha Corner #9

Dec 19, 2023
To $PyUSD or not to $PyUSD? - Cryptovestor's Alpha Corner #9

If you have been reading my content for the past few months, you know that I have been one of the few people, if not the only person, who has been speculating that a major deal is coming between Frax and PayPal, through its Paxos relationship.

Well now it looks like details are starting to surface about this partnership.

On-chain data shows that there have been a few large swaps from USDP to PyUSD in the Frax Treasury. It’s clear to me that the focus has shifted away from USDP to PyUSD, and it makes sense. PayPal has 400m customers worldwide, they have many payment integrations, their own debit card, on-ramps and off-ramps, iOS and Android apps and are a trusted payment rail for millions of merchants.

Frax Finance is becoming PayPal’s on-chain liquidity partner right under our nose!

Let’s breakdown what I see in the future for Frax as it relates to a Paypal relationship

1.     A Curve basepool will be made for PYUSDFRAX

2.     All major assets will be paired with this basepool

3.     Incentives will flow to these pools by way of the FraxBP mechanism

4.     A Frax/Paypal partnership will allow for access to Paypal’s on-ramps and off-ramps allowing users to convert to cash quickly and directly into their bank account.

5.     You will be able to hold Frax, swap it to PyUSD and use it on the PayPal app for purchases and remittances.

The list goes on and on, there are probably way more integration that can be done that I haven’t even considered yet. But one thing is clear, this relationship with PayPal makes the 4pool and Luna’s deal look like a joke.

So wen announcement?

In my view, it’s clear that something big is brewing behind the scenes with PayPal and it will become clearer as more signs emerge. Frax is destined to become the on-chain version of Tether or Circle!

As more details emerge of this relationship, I will be there to cover it!

Cheers Anon

Follow me @Cryptovestor77 on X for 24/7 Alpha on the Curve and Frax and now the f(x) Ecosystems.

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