"We're Content" - FraxCheck #34

This week... I call this week the “We're Content” week. As the name suggests, this week we're content, in our lane, moisturized.

Apr 11, 2023


  1. FraxBP up, 3Pool & Frax3CRV remained flat — TVL $500M, 114% of 3POOL
  2. FPI “equity” value hits $5M
  3. FraxLend generating ~$50k/ month

Frax Supply & Peg

There has been no changes to the FRAX stablecoin supply this week.  The peg is finally regaining its ground, currently between 0.998 and 1.002.  The Curve swap rate is at 0.9989 — things are content.

Collateralization & Decentralization Ratios

The collateralization percentage increased by 80bps this week to 93.3%.  This is within the highest range for this metric so we’re on our way to that 100% mark.  Next is the decentralization percentage, which decreased by 2% to 22.5%.  Though we’re still within the normal range.


FraxBP hit a nice round $500M in TVL this week.  However, we should taper our expectations on the volume this week.  For April, the volume is at $19.5M which is only a 3.9% utilization rate.  FraxBP is 114% of 3Pool.  We’ve been holding this ratio for the past 5 weeks now.  This may be a regime change — don’t jinx it.  Though what is notable is the fact that FraxBP’s TVL grew while 3Pool’s and Frax3CRV’s TVL remained flat.

FrxETH supply and distribution

FrxETH saw another up-only week.  It increased by 2.4% to 131,376 frxETH — love to see it.  Though we would like to see the growth rate in the 5%s and above range!

FrxETH peg

This peg is literally as near-perfect as it could be and when we check the Curve markets, we received an exchange rate of 0.9983.  It’s good to not to see any 7s in this exchange rate.

Competitive landscape

FrxETH is currently in fourth place with 1.64% market share.  The 30D change shows that FrxETH is still the fastest growing LSD at nearly 15%.  We need 3.5x our count to catch up to Rocket Pool, that’s a long way ahead but we’re here for it.


FPI saw a good week with its treasury increasing a little more than $200k.  The current supply is 82.3M with indexed inflation at 6%.  The treasury is able to generate excess yields above the required amount which resulted in about $5M in “equity” value to the veFPIS holders.


Up next we have FraxLend.  We see TVL at $170M and the supplied FRAX value at about $65M.  The supplied value is closely approaching its levels before the USDC fiasco.  For those supplied FRAX, users can lend them out to many pairs.  Ignore the top row as the v2 sfrxETH/FRAX pair is deprecated.  We see the usual suspect of CRV printing a solid 9%, and this rate has been pretty much ranging between 7 to 9%.  On the other hand, if you have sfrxETH, now is a chance to borrow some FRAX at a lower rate.  There’s currently $5M available to be borrowed.


Now the last leg of the DeFi Trinity: the DEX.  FraxSwap holds an TVL of $71M — up small from the last week.  Though we can see that the monthly volume will be lower this month than in the first quarter of 2023.  The top volume pair is still the FXS/FRAX pair with $16M in 7D volume.


The AMOs also had an okay week, up 10bps.  The Curve, Lending, and Investor AMO pretty much remained flat this week.  The gain for this week came from the Liquidity AMO for a total of $923.2M across all the AMOs.

Revenue, Expenses, Profit

For the month of April, we’re doing alright.  The Convex AMO is currently at a $160k loss but we have revenue of $670k and expenses of $830k.  The Fraxlend AMO is printing about $14k per week so we've acquired nearly $30k so far.  Also fortunately everyone’s being safe out there so we didn’t have any liquidations.  Lastly, we have the FPI printing a solid $25k with unclaimed rewards of nearly $55k.

Well, that is it for this week’s Frax Check!  Tune in next week to see where we are along our Frax journey.


Not financial or tax advice. This article is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This post is not tax advice. Talk to your accountant. Do your own research.

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