Thread by @SalomonCrypto

(1/19) The other day @0xkapital_k and I were talking, and he changed the way I’m thinking about @fraxfinance.

Let’s build out some metaphors together!

Frax, @CurveFinance, @ConvexFinance: Colossus Rising

(2/19) Not financial advice.

And really this shouldn’t look like financial advice. We are building metaphors here…

We are trying to help the world see how special De-Fi, crypto and everything we are building are.

https://twitter.com/SalomonCrypto/status/1523419396017852416

(3/19) Check out our conversation below!

Tl;dr @0xkapital_k had this idea that we need to think of @fraxfinance as the first @ethereum-native L1.

https://twitter.com/SalomonCrypto/status/1535407125798608896

(4/19) This idea is going to ruffle some feathers. An L1 means… something about a blockchain, but this is a new concept.

And I’m loving it! If an L1 is:

- a protocol
- secured by a token
- and allows devs to build dApps and companies

then @fraxfinance seems pretty L1-like!

(5/19) The implications are massive, just think asset pricing alone. We are talking about repricing $FXS from a governance token to a L1 token.

Per @0xkapital_k’s point, if you’re valuing $FXS like $LUNA we are talking an order of magnitude more valuable.

(6/19) So this really got me thinking… if we can think of @fraxfinance like an L1, how else can a re-framing help us understand what’s happening?

Specifically in regards to FRAXBP.

https://twitter.com/SalomonCrypto/status/1529892630624190465

(7/19) When I look at De-Fi, I can already see the future we are building. Now we are still so early; we still need to build most of what’s coming.

But if you squint your eyes and believe hard enough, you’ll start to see a form taking shape…

https://twitter.com/SalomonCrypto/status/1535399779609419776

(8/19) Lately, there has be a lot of discussion about the value and the future of The Flywheel.

This post is going to skip that debate and assume that The Flywheel is awesome and important innovation.

We need to build through bear markets, not dismantle what we are building.

(9/19) The purpose of The Flywheel is to incentivize the deepest possibile liquidity and to align the incentives of all pariticpants.

@CurveFinance has never (and might never) ever have the highest TVL, but The Flywheel ensures it will always have the deepest liquidity.

(10/19) Right now, The Flywheel consists of the relationship between @CurveFinance and @ConvexFinance.

@fraxfinance is the biggest and most resilient spinner of this wheel, but today Frax is still just another protocol spinning The Wheel.

Enter FRAXBP.

https://twitter.com/SalomonCrypto/status/1531675884498862082

(11/19) FRAXBP changes everything. Read my linked posts.

Tl;dr FRAXBP will be a @CurveFinance pool of $FRAX and $USDC. @fraxfinance is not only committing to obscene levels of (bribe/voting) support for FRAXBP, Frax will similarly support any pools paired with FRAXBP.

(12/19) SoonTM, protocols will have these options:

- pair against $ETH/L1 token
- pair against a shitcoin
- pair against any stablecoin but $FRAX

and build liquidity all by yourself. Or:

- pair with FRAXBP and immediately @fraxfinance will begin paying to incentivize your pool

(13/19) FRAXBP will grant $FRAX preferred status within @CurveFinance.

$USDC and $USDT will always have a special role as the fiat-highways in and out of crypto.

…But I think De-Fi just found it’s native stablecoin.

(14/19) Money/value is how we quantify and manipulate energy in the 21st century.

$FRAX will the medium by which that energy will flow.

@CurveFinance will pump energy around the whole body of De-Fi.

@ConvexFinance will decide where the energy needs to be at what time.

(15/19) I was chatting with @Raaid27 and he asked:

“At what point do we see curve/convex/Frax as the same stack? … It’s almost like those three teams are cofounders of something greater.”

I couldn’t agree more. I think that “point” is the launch of FRAXBP.

(16/19) I think that FRAXBP is the moment the moment of conception. From here on out, we will watch the colossus grow and grow and grow.

Until it is ready for the real war coming…

https://twitter.com/salomoncrypto/status/1533860158350102529

(17/19) @fraxfinance provides $FRAX which, like blood, circulated through DeFi moving energy where it’s needed.

@CurveFinance is the heart, moving $FRAX to where it needs to be.

@ConvexFinance is the brain, making the decisions on where and when the $FRAX needs to be.

(18/19) And now I think you can finally see the shapes I’m taking about. Take a look out there through the fog of The Curve Wars and the debris of Moonfall.

Can you see the outline?

(19/19) Colossus is Rising!

@CurveFinance
@ConvexFinance
@fraxfinance

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https://twitter.com/salomoncrypto/status/1535630299924557824

@0xCha0s ok I think I got it right this time.