Haym Salomon Profile picture
Jun 9 21 tweets 15 min read
(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

Like what you read? Help me spread the world by retweeting the thread (linked below).

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More from @SalomonCrypto

Jun 8
(1/25) Crypto provides A LOT of options for yield farming. Some novel, most poor copies. Many people might say "speculative crypto crap"

But some protocols aren't doing crazy yield farms. These protocols are doing real finance and are changing the world

Let's talk @goldfinch_fi
(2/25) Not financial advice.

...In fact I could probably use financial advice. Send help.

(3/25) I'm all in on crypto because de-fi is inevitable. As someone who worked in the inner layers of high-finance, this is just a better system.

Today we are still building. If you spend enough time weeding through racist memes on Twitter, you can begin to see the future.
Read 26 tweets
Jun 7
(1/16) We all walk the path of De-Fi. The road is long and dark, and there are monsters in the forest.

Let me introduce you someone here to change the game and make us safe. A keeper!

A breakdown of @Rook protocol.
(3/16) We’ve discussed arbitrage in the past and we will discuss MEV more in the future.

For now, MEV is the value someone with special information or access to the blockchain can capture from the regular flow of transactions.
Read 17 tweets
Jun 7
(1/12) Daily routine (yesterday): wake up, coffee, open @CurveCap

Ummm guys did you see this? @feiprotocol is dumping their $CVX???? Wtf? Is this the canary in the coal mine?

A breakdown of @tribedaoxyz’s TIP-110.
(2/12) Not financial advice.

Seriously don’t take my advice, I promise you I’ve lost more money than you. This is for informational/entertainment purposes.

(3/12) At the end of May, @tribedaoxyz posted TIP-110, proposing to simplify PCV and sell their $CVX (amongst other things).

tribe.fei.money/t/tip-110-simp…
Read 13 tweets
Jun 7
(1/21) As De-Fi matures some protocols look around and realize "we can do more together than we were doing apart."

This is how @RariCapital and @feiprotocol joined together to create two incredible products, Fuse and Turbo.

Come, let me introduce you to my @tribedaoxyz!
(2/21) Not financial advice, now or ever.

This one deserves a special disclaimer. At the end of April 2022, @RariCapital suffered a hack resulting in the loss of $80MM. Compensation for loss is still TBD.

Proceed with caution.

(3/21) @RariCapital Fuse

Fuse is a protocol that allows you to create customized, isolated lending markets.

...but wut mean?

Lending markets: a place where people can deposit assets and others can take out loans.

Like @AaveAave.

app.rari.capital/fuse
Read 22 tweets
Jun 6
(1/21) The Curve Wars Volume XII: Choices Dwindling, Options Opening

A fan-fiction of the story of @fraxfinance and @dopex_io will control The Curve Theater.

-Haym
(2/21) Our story begins on the killing fields of @CurveFinance. At this point, @ConvexFinance has already established dominance but has made it clear he will not rule. So now The Kingmaker watches with interest as the combatants war.
(3/21) The Curve Wars are the great leveler. Titans like @terra_money have fallen. Profiteers like @FinanceMochi have met their ends from champions like @Tetranode.

But one player has shown incredible resilience. As the battle gets more fierce, he only grows stronger.
Read 22 tweets
Jun 6
(1/20) One of the first reasons I became aware of @fraxfinance was because I noticed $FXS incentives all over the place. My gut reaction was "inflationary token, swipe left."

Wow, was that a mistake!

Continue for a deep dive on $FXS.
(2/20) NOT FINANCIAL ADVICE. This is a data dump. Please do your own research.

Data was gathered over the course of the last 12 hrs at different times and I rounded.

Finally I am going to ignore $FPI / $FPIS. Look into "Frax Price Index" for more info.

(3/20) @fraxfinance has a dual token system: $FRAX and $FXS.

$FRAX is a stablecoin and will (hopefully) always have a value of $1. No more, no less.

Today the supply is ~1.5B, but Frax hopes to expand that to trillions.
Read 21 tweets

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