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Jun 9, 2022, 21 tweets

(1/20) To @samkazemian: I thought we talked about this, please slow down on the alpha!

To @SmallCapScience and @dcfgod: THANK YOU!!!

To everyone else: @bigboyboccaccio is the hero, this is just a dramatic reading of his notes.

Re: @MarketCapping about @fraxfinance

(2/20) Yesterday @samkazemian was on @MarketCapping to discuss @fraxfinance, and boy was it a BANGER!

I suggest you listen for yourself, but if you can't you're in luck! @bigboyboccaccio listened in and wrote out some 🤌 notes.

Thank you for sharing!

(3/20) This thread is going to be an abbreviated summary of another persons notes of a conversation between 3 others.

Derivative to a degree that @tztokchad would appreciate!

(PS: actually read the portion of @bigboyboccaccio's notes I attach; if you don't you'll miss out)

(4/20) FRAX, Curve & FraxBasePool

For brevity I am going to leave my explainer link here and just let you read up.

(5/20) The biggest FRAXBP news from yesterday is an update/clarification on the timeline.

Tl;dr theres technical stuff happening in the background that needs to happen before anything can be voted on. After its done, there will be two separate votes: FRAXBP and whitelisting $CRV

(6/20) @fraxfinance Fundamentals

AMOs - automated investment managers that deploy Frax's capital to harvest yield (responsibly)

CR - measure of the market's faith in "algorithmic backing"

DR - measure of how "crypto-native" Frax's collateral backing is

(7/20) One of the (many) special things about @fraxfinance is that it is entirely on-chain. You can understand everything about $FRAX by analyzing the chain.

Based on deterministic models, you can show that if every person sold their $FRAX into POL, $FRAX would not depeg.

(8/20) Tl;dr @samkazemian thinks @fraxfinance should focus all of its attention on-chain. @bigboyboccaccio wrote poetry here.

My opinion? Sam was spitting 🔥. My only suggestion: You need to be in front of congress, my friend.

"If you aren't at the table, you are on the menu."

(9/20) $FXS

$FXS is more than $FXS ↔️ $FRAX. It is accruing value by generating real, external revenue.

@fraxfinance can value $FXS based on hard metrics and make a determination when $FXS is undervalued. In those cases, Frax might want to buy back $FXS.

(10/20) Fraxswap

I'll drop another explainer here. Use this to get caught up to speed on Fraxswap and we'll use the next tweets to discuss any updates/new ideas.

(11/20)
- Long term Fraxswap has a switch that can distribute fees to $FXS holders.

- Fraxswap is not zero-sum competitive with @CurveFinance. Fraxswap solves a different need, primarily with DAOs with a regular need to rebalance their token.

(12/20)
- Using Fraxswap to protect liquid backing (@OlympusDAO 👀)

- Customs pricing curves

(13/20) Fraxlend

ALPHA #alpha #cryptoalpha #comehereforalpha #payattention!!!!!

I'll leave you with (in my opinion) the most important goal of Fraxlend: create use cases for $FRAX.

(14/20) Ecosystem

And again, @samkazemian hammers this home: $FXS is more than just something to burn to create $FRAX, it is a ve-token with control over an incredibly large and profitable treasury.

(15/20) ve-tokens are an economic primitive that allows the market to express the value of a token's governance power.

ve-tokens / $veFXS give the market the ability to discover and express even more value.

(16/20) Well @samkazemian wasn't saying exactly that, those are my words.

What he is saying is "build on our programmable money!!! Build on $FXS (and $FRAX)"

(17/20) FPI Yield Sustainability

$FPI is a "stablecoin" that matches inflation.

@fraxfinance only wants to provide/use yields that derive revenue from real sources (as opposed to ephemeral sources like marketing spend @anchor_protocol 👀)

(18/20) Long term future

ALPHA #alpha #cryptoalpha #comehereforalpha #payattention!!!!!

Wen Fraxchain????

(19/20) And that's a wrap!

Thank you @bigboyboccaccio!!! Once again, you're the true hero. I see he has a substack; if all his work is half as thorough as this I highly recommend subscribing!

@SmallCapScience @dcfgod great show! I'm now a subscriber!

(20/20) @samkazemian, remember our discussion on the rate of alpha? Do you remember what I asked you about slowing down???

@samkazemian @MarketCapping episode: bit.ly/FraxCast
@bigboyboccaccio notes: bit.ly/FraxNotes

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