"Win Some, Lose Some" - FraxCheck #36

This week... I call this week the “Win Some, Lose Some” week. As the name suggests, this week we took some hits but also took some dubs.

Apr 25, 2023


  1. FraxBP // 122% of 3Pool
  2. frxETH // 12% WoW Growth, 158,987 frxETH supply
  3. Profitability // Net Profit of $123k

Frax Supply & Peg

Finally the FRAX stablecoin supply finally moved, except in the opposite direction that we wanted.  It’s down 60bps from last week.  The peg had a bit of a range this week going from the low of 0.996 to a high of 1.001.  Curve exchange rate for 100M FRAX came in at 0.9988, a pretty solid rate.

Collateralization & Decentralization Ratios

A new ATH in the Collateralization Ratio!  We printed 94.3%, up 50bps from last week.  Though to balance out the good news, we also saw a decline of 6.6% in the Decentralization Ratio to 20.9%.


FraxBP increased by $1M in TVL over the week — so unchanged.  The volume for April is markedly lower than that of March’s.  So Curve revenue is expected to be lower this month as well.

% of 3 pool

From the far left field, we saw the “% of 3Pool” ratio flew to new heights at 122%.  We’re in the ratio discovery stage.  This increase actually came from 3Pool decreasing nearly 10%, while the FraxBP remained unchanged.  We also saw a drop of $100M in TVL for the Frax3CRV.  Though, it is possible that the liquidity migrated over to FraxPP, the new FRAX+USDP base pool.

FrxETH supply and distribution

Another hot week for frxETH with an increase of 12% to 158,987 frxETH supply.  Nearly 60% of the supply is staked in the sfrxETH vault earning the sweet native ETH yield, whereas 29% is hanging out in the Curve LP with the remaining 11% chilling in the ether.

FrxETH peg

Alas, frxETH is still a stablecoin so we must check the peg.  Here we see that the peg is 0.9992 and the exchange rate on Curve is 0.9991.  This is the closest I’ve seen the delta between the dashboard’s exchange rate and Curve’s.

Competitive landscape

FrxETH put up big numbers this week on the growth charts as we experienced a big jump of 9% to hit a new market share of 1.92%.  Rocketpool also experienced a nice bump but we’re neck-to-neck.  However bad news must follow good news; and frxETH is no longer the top in the yield department.


FPI stats remained pretty unchanged across the board except there were some funds being moved around.  During the March Circle crisis, the team moved FRAX and FPI from the multi-sig into the Convex pool during that period of time.  Now, the team moved those funds back into the multi-sig.  Additionally, we saw a decrease of nearly $500k from the equity portion of the FPI balance sheet.


On FraxLend, we’re not quite back to where we were prior to the March Circle crisis.  Though the supply value has fully recovered, the collateral value is still very much subpar.  Users are still hesitant to provide their collateral into FraxLend.  But there are plenty of reasons to borrow on FraxLend since the rate for sfrxETH is still only 2%.


The bad news continues with the final leg of the DeFi trinity.  FraxSwap experienced a decline of nearly 7%.  On the bright side, the FXS/FRAX pair is steadily facilitating nearly $15M of volume every week.


As mentioned previously, the Frax3CRV saw a drop of nearly $100M in TVL and we see that here in the Curve AMO.  But note that this liquidity could’ve been migrated over to the FraxPP, FRAX+USDP base pool.  We also saw a decline in both the Liquidity and Investor AMO of $6M and $4M, respectively.

Revenue, Expenses, Profit

But of course, we must end with some good news.  This is a big win for the team as we are net profitable so far in April.  Since the month is wrapping up by next week and the next Votium bribe expense won’t be until May, it’s highly likely that we get a green month.


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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