Welcome to Frax Check. Your weekly frax vibe check. I am your host Kapital_K and I’m joined by my co-host DeFi Dave and our producer extraordinaire Sam. We will be going straight to the source of truth via checking the chain. Before we jump in, please subscribe to the flywheelpod, it really does help! Please also follow us @flywheelpod on Twitter and tg.
This week.. I call this week the “Up Small” week. As the name suggests, we’re pretty much “up small” across the board this week. Will think of a more creative name next week, hopefully some fun things happen.
Let's begin our regular programming with the Peg. We saw it get as low as $0.998 with a high of $1.001 for the week. Peg Check = Strong. We then looked at Curve via swapping 100M FRAX for USDC. We received a 0.9978 exchange rate. So, both metrics pretty much unchanged. Moving on we have our Collateralization %.
This is the % that conveys how much FXS (algorithmic) is used as collateral. We remained unchanged for the week still at 92%. Following we have the Decentralize %. Last week we saw a big reversal jumping by more than 55% but this week, we’re up small with 0.9% from last week at 22.5%. Still V v v v much bear market vibes across the board when it comes to these two metrics. We want to see the Collat % going back to the low 80s and the Decent % going back to 30s. But I’m hopeful.
Okay. Quick summary Health Check. Peg Good. Curve Swap unchanged Collat % could be better. Decent % may be in a reversal.
Next, we have our FrxETH segment. As always, we check the peg. Peg check here is strong you see the price delta is only 0.0003 between frxETH and ETH. Pretty much unchanged from last week. But we obvs have to go into the market and check this ourselves and you see here that I tried to do a 3500 ETH swap which is roughly the amount of the largest frxETH holder and I get an exchange rate of 0.9985. That’s not too shabby. Also, last week we had 50.5% of the frxETH staked in the Curve pool, and now we’re up small to 51.2% of the supply inside curve. The APY as per Convex is at 7.36% projected versus 7.6% for sfrxETH. The market here is so dam efficient, I love it. Let’s see what the count looks like this week.
The count is at 50,705. And look at that chart, I know you can’t read it but just appreciate the verticalness off that graph. +7.5%. Hot. It may look like we’re tapering a bit but I think this new LSD narrative floating around is going to be a catalyst for more deposits. On the staked side we see that 47.8% of all the frxETH is being staked to earn the ETH native staking rewards, which is projected at the 7.94% -- very nice.
We have a new slide here where we layout the LSD market landscape. Obvs, we have Lido in the lead with 29% of the market but you can see here that Frax has the highest 30-day delta in the group. Let’s keep fighting the good fight and pump up these rookie numbers! Now, let’s do a quick summary check.
Peg check strong. Curve swap strong. Count up-only. Staked % healthy.
Let's jump into the AMO Holdings. We have a grand total of $1010.4M across all the AMOs. This was a slight up move of 60 bps from last week but recall that we saw a massive increase form 2 weeks ago up 83.3%. Things are quiet on the AMO front.
Onto the profitability of the Convex AMO. Though, not everything is up small. For the month of January so far we have $470k in revenue and $1.17M in expenses. With a net loss of $700k to start our 2023. But we’re early into the month so hopefully we see some sweet sweet revenue uptick before month’s end.
Quick summary money check. AMO holdings was $1010.4M, +0.6% WoW. Profitability, for December was down bad but we’re in 2023 now so eyes forward!
Here's my favorite section of the Frax Check. The Liquidity Check. Do you guys remember the theme of this week, it was “Up Small”. Well, in this specific segment, we ain’t up small baby. We’re up 5% pushing us into the 80s and we’re rocking a strong 82% of the 3pool. The FraxBasedPool is $488.9M versus 3pool's $589.9M. The basedpool is up 5.5% for the week. But Note that we FLIPPED the Frax3CRV pool!!! Stepping stones, 3Pool next. Moving on, let’s chat about our metapools.
Reminder the metapool are pools that are PAIRED with the BasedPool, examples like LUSD/FraxBP. We’re breaking above! We’re at $45.5M, a drop of 4.8% from last week. We just can’t seem to break above the $50M level for the past 6-7 Frax Checks. C’mon people, we got some yield and liquidity for your community, so come and get some! Any projects out there looking to work with the Metapool, please join the Flywheel pod TG chat and DM any of the hosts for assistance.
Also one quick note, we also have an additional $11.7M of TVL from non-stable pairs in the Metapools. These are pairs like cvxfxs/FraxBP and cvxcrv/FraxBP. The non-stable pairs TVL increased by over 10% last week. So adding all of the stables and non-stables TVL, we have a total of $57.2M of liquidity paired against FraxBP – relatively unchanged, down small.
Summary time. Liquidity Check. FraxBP is 488.9M which is 82% of 3Pool. The MetaPool is at $45.5M for stable pairs and $11.7M for non-stable pairs. And TVL of All pairs (stables + non-stables) are at $57.8M.
Lastly, the main reason why we track all of this is to make sure the FRAX supply could grow as big as possible. This week we're at 1.018B, which is unchanged for the last 2 weeks. We’re flirting with that 9-figure digit line, and I don’t like it. We need to keep our eyes on the prize and grow this number.
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