The Calm Before The v3 Storm - Cryptovestor’s Alpha Corner #3

Sept 26, 2023

It's been quiet, very quiet in the world of Frax. Sam K. has kept to himself and focused on putting the final touches on Frax v3 while we all wait in eager anticipation.

Four main points stand out in the last 2 weeks as far as alpha goes that I was able to dig up.

1.) Onchain Paxos Payments

Some on-chain sleuths have found ~ 350k in USDP payments coming from Paxos to the Frax treasury wallet. Sam commented that it's for holding USDP. But why so much? 350k over a month for 30m USDP held in the curve pool? Something doesn't quite add up. Something big is brewing with Paxos but we don't have visibility on this yet. One thing is clear though, Frax is now getting paid from Paxos and Sam indicated payments will be getting larger in the short term.

2.) PyUSD metapool

CT was buzzing about a new basepool between PyUSD and FraxBP. If you've been following me you know I've been vocal about this coming. Its not a basepool yet, but a metapool paired with FraxBP. Again there is more to this than what is being released. I speculate there is some deal brewing between Frax and PayPal via the Paxos connection. Listen to Sam in this clip from a recent X-space and judge for yourself.

Here's a clip of the spaces attached to this tweet. Sorry for the poor audio quality. You can see he says that something bullish came out of that call and he subtly implied that it might be related to @PayPal new stablecoin $PYUSD. pic.twitter.com/gHgepFRYfa
— Cryptovestor (@Cryptovestor77) August 8, 2023

What could this relationship be? Maybe another Paxos-style deal but with Paypal to help them grow their supply onchain? Maybe Paypal and PyUSD will be used as an onramp and offramp? Maybe PayPal and Paxos will buy FXBs to back their stables? We shall soon find out. I tried asking Sam about it in TG but all I get is silence... Sometimes silence is acknowledgement. Sam did say the PyUSD pool will be getting the customary FraxBP treatment and receive bribed as demand increases.

3.) FrxGov

Don't have much info on this yet but FrxGov was quietly soft-launched a few days ago, probably in preparation for Frax v3 voting. Take a look at the screenshot below.

4.) Plaid API

Sam leaked some alpha a few days ago about how Frax will be using Plaid and some special APIs to connect FinresPBC's brokerage accounts to an online up-to-date attestation of assets held by Frax. Tether can't get an audit done but with Frax, you will get real-time data of what's actually in the account!