Welcome to Frax Check. Your weekly frax vibe check. I am your host Kapital_K and I’m joined by my cohost 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 and follow us @flywheelpod on Twitter and telegram.
This week.. I call this week the “Lil bit of dis and lil bit of dat” week. We have some ups and some downs and some unchanged.
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 0.9983 exchange rate, which is an increase of 2 bps compared to last week’s. 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 are unchanged over the week at 93.3%. We’ve been at these levels for the last 5 Frax Checks. Following we have the Decentralize %. We bounced off the lows and have been hovering around the 14 to 15% mark. This week we’re back down to 14% so that’s down move of 1.8%. But 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.
Okay. Quick summary Health Check. Peg Good. Curve Swap much better this week. Collat % could be better. Decent % bounce from ATL and now ranging.
Next, we have our new segment of the check where we look at FrxETH. As always, we check the peg. Peg check here is strong you see the price delta is only 0.0014 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 0.9965. That’s not too bad. Also, last week we had 61% of the frxETH staked in the Curve pool, and now we’re up a little to 63.5% of the supply inside curve. The APY as per Convex is at 9% projected versus 10.8% for sfrxETH. Littttt. Let’s see what the count looks like this week.
The count is at 44,800. And look at that chart, I know you can’t read it but just appreciate the verticalness off that graph. +6.5%. Hot. It may look like we’re tapering a bit but let’s see if we resume the uponly action next week. On the staked side we see that 36% of all the frxETH is being staked to earn the ETH native staking rewards, which is projected at the 10.8% -- very nice. 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 $547.4M across all the AMOs. This was unchanged compared to last week. The Curve AMO increased by $3M. And the Liquidity and Investor AMO decreased by like $5M. So just some musical chairs going on with the assets here. No news this week on the AMOs. Again we are ranging here too. No much movement in the past few Frax Checks.
Onto the profitability of the Convex AMO. We’re now at $960k in Revenue for the month of December so far. We paid roughly $750k in bribes plus the monthly opex of $430k for expenses. Therefore, for December we have a loss of $220k currently. But it’s still very early so let’s keep our hopes up. Upward and Onward champs.
Quick summary money check. AMO holdings was $547M, -0.1% WoW. Profitability, for November was down bad but we’re early into December so fingers crossed.
Here's my favorite section of the Frax Check. The Liquidity Check. Do you guys remember the theme of this week, it was “Lil bit of this and lil bit of that”. Well, we’re unchanged. We’re at 78% of the 3POOL. The FraxBasedPool is $476M versus 3pool's $613M. The basedpool pretty much unchanged since last week. But Note that we’re NECK-to-NECK with Frax3CRV pool again. Let’s first flip this then we set our eyes on the 3pool. 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 $49.6M. We did get as low as $38M 3 weeks ago so I’m glad to see this relief bounce. 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 $11.4M of TVL from non-stable pairs in the Metapools. These are pairs like cvxfxs/FraxBP and cvxcrv/FraxBP. The non-stable pairs TVL dropped a little down from 12M last week. So adding all of the stables and non-stables TVL, we have a total of $61M of liquidity paired against FraxBP, flat for the week.
Summary time. Liquidity Check. FraxBP is 476.8M which is 78% of 3Pool. The MetaPool is at $49.6M for stable pairs. And TVL of All pairs (stables + non-stables) are at $61.0M.
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 1.023B, which is unchanged from last week. 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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Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.
