Did FRAX create the DeFi Trinity?

23-02-20 15:29
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原文标题:《Has @fraxfinance created the Holy Trinity of DeFi?? 》
Originally written by Jake Pahor
Kate, Marsbit

Note: This article is from @jake_pahor's Twitter feed, which MarsBit has collated as follows:

Part 9 of my in-depth study series will cover $FXS.

Did @fraxfinance create the DeFi Trinity? (Stablecoin, liquidity, lending)

The purpose of this in-depth series is to analyze popular items and rank them according to a set of frameworks. I'll outline my DYOR framework below.

Frax Finance


As I complete each project, I update and track the score on my Google sheet. You can check it out for free below.

Frax Finance


Let's dive into.....

- $FXS

- Price = $10.25

- Market cap: $755 million - 65th

- Record high = $42.80 (-76%)

- All-time low = $1.50 (+581%)

Frax Finance is an ecosystem of decentralized financial instruments, including

- Fraxswap

- Fraxlend

- Stablecoins

- ETH Liquid pledge

At the heart of the ecosystem are two decentralized stablecoins. The first of them is part algorithm, part collation. Between the USDC and the failed UST.

- $FRAX (pegged to the US dollar)

- Frax Price Index $FPI (anti-inflation and indexed to CPI)

The ultimate goal of the Frax protocol is to provide a highly scalable, decentralized algorithmic currency to replace fixed-supply digital assets such as BTCS.

This is a great post from @ThorHartvigsen to help speed up your project.

Frax Finance


1. Revenue

Prior to the ETH Shanghai upgrade, frxETH liquidity Pledge products had achieved some amazing growth. According to token terminal -- frxETH's fees and revenue hit a record high last week.

- Cost: $118,000 a week, $16,000 a day

- Earnings: $12,000 a week, $17,000 a day

Frax Finance

This is just one product of Frax. According to Defillama, Frax swaps are also paying good fees - up to $34,000 in the last 24 hours.

Rating: 8.5 - Income.

Frax Finance

2. The Vault

At launch, 5% of FXS were allocated to Frax Treasury, which was entirely managed by the community and team.

According to Etherscan, the Multi-Sign Wallet currently has more than $70 million in assets. 97% share of the $FPIS-Frax Price index ($68 million).

Frax Finance

This is a strong pool of money for the market value and size of the project. It is very concentrated in FPIS, but from a diversification perspective, this is a slight problem.

Rating: 8.5 - Financial pool

3. Token Economics

According to coingecko, these are the current supply statistics for $FXS

- Circulation supply = 73.8m

- Total supply = 99.82m

- Market value = $755 million

-FDV = $1.02 billion

- Market value/FDV = 0.74

生态系统中有几个 Token

- $FXS-治理和实用 Token

- $FRAX- Stablecoin is pegged to $1

- $FPI-CPI pegged stablecoin

- $FPIS- FPI 的治理 Token

- $frxETH- A stablecoin loosely connected to ETH

- $sfrxETH- Vault accumulated pledge proceeds

然而,我们将在本节重点介绍$FXS,因为它是整个生态系统的价值增值和治理 Token 。

It is designed to be volatile, with the potential for systematic upward and downward utility.

Frax Finance

FXS 供应最初设置为最多 1 亿个 Token 。

However, the agreement was designed in such a way that if FRAX demand increased, FXS would experience a significant amount of supply deflation.

Currently, the total supply stands at 99.82 million.

Frax Finance

You can also lock in your FXS for veFXS and get special promotions, special governance rights, and AMO profits.

总体而言,强大的 Token 经济学具有良好的增值能力、固定的最大供应量和回购/销毁机制。

打分:9 - Token 经济学。

4. Lock in money

在 Token 发布时,FXS 按以下方式分配

- 65% community (65 million FXS)

- 35% of teams and investors (35 million FXS)

Frax Finance

Frax Token 的上限为 1 亿,该团队描述了与比特币挖矿类似的释放。FXS 供应量将在每年的 12 月 20 日每 12 个月减半。

目前,约 74% 的 Token 在流通中。

Rating: 8.5 - Lock in funds.

5. Use cases

What I like about Frax is that they have a very diverse suite of DeFi products. They own everything from stablecoins, swaps, loans and liquidity pledges.

In the entire ecosystem, they have less than $2 billion in TVLS. Including...

Frax Finance

-Frax = $1.56b TVL

- Fraxlend= $185m TVL

- Frax Swap= $75m TVL

- Frax ETH= $163m TVL

Frax Finance

Frax Finance

Frax Finance

Frax Finance

The biggest recent increase has been in frxETH in anticipation of the Shanghai upgrade and subsequent unlocking of pledged ETH.

frxETH currently pays the best annual interest rate of all liquid collateral derivatives, at about 8.17%.

Rating: 9 - Use cases

Frax Finance

Step 6: Road map

Frax's focus is to provide the best and most innovative stablecoin infrastructure in DeFi.

In a number of recent interviews @samkazemian outlined some big plans and ambitions for the project in 2023 and beyond...

- Open a Federal Reserve Master Account (FMA)- long-term goal

- Support Shanghai upgrade - frxETH

- Develop leverage AMM (B-AMM)

Sam is very active and has given some interesting interviews recently. A great summary from @ReveloIntel

Rating: 8 - Roadmap

Frax Finance


7. Team and money

FRAX was founded in 2019 by Sam Kazemian, Travis Moore and Jason Huan. It went live on the Ethereum mainnet in 2020.

Twelve per cent of FXS supply was allocated to private investors - all of which has been unlocked (in the early years).

Some of the biggest crypto investors are backers of the project, as listed below.

Rating: 8.5 - Team and Money

Frax Finance

Step 8 Summarize

Score for each category (out of 10)

8.5 - Income - Diversified sources of income

8.5 - Treasury - $70 million mainly for FPIS

9 - Token 经济学 - 固定最大供应,回购/燃烧机制

8.5 - 锁定资金 - 74% 在流通中,没有 Token 解锁

9 - Use case -  DeFi Trinity   (Stablecoin, liquidity, lending)

8 - Roadmap - Plans for trillions of dollars of McAps

8.5 - Team/Funding - Strong team, community and investors

Total - 8.7 weighted average score

Overall, I was impressed by Frax Finance. With several upcoming narratives and bullish catalysts, the team is in a very good position

- Shanghai Upgrade - frxETH

- Decentralized Stablecoin - FRAX

Frax ranks second in my overall rankings, behind GMX. I'll be watching this program closely over the next few months, and FXS is already showing some strength.

The purpose of this article is for education and research, not investment or financial advice. The current macro environment remains very volatile due to the risk of a recession in 2023 and Fed tightening, so proceed with caution.

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