Blockworks Research Profile picture
Jun 21, 2022 8 tweets 7 min read Read on X
Can @fraxfinance become the decentralized bank of DeFi?

Fraxlend, FraxSwap, and a new FRAX base pool will flip the switch and trigger FRAX demand

🧵 by @0xpibblez (1/8)
@fraxfinance @0xpibblez 2/ $FRAX supply currently sits at only 20% of DAI's supply. With new developments, FRAX demand could surge 400% before breaking even with DAI.

The value and revenue from this growth, of course, would flow to FXS holders
@fraxfinance @0xpibblez 3/ $FXS holders are currently voting on a $20M revenue-fueled buyback.

With a new TWAMM and FraxSwap, Frax stands to earn even more revenue via a 0.3% trading fee on all swaps.

FraxSwap is a permissionless treasury management tool for DeFi projects to conduct monetary policy
@fraxfinance @0xpibblez 4/ Frax introduced plans for real world asset lending AMOs through its new Fraxlend product, which is set to launch within 7 days.

This will serve as a new, composable primitive that permits both under-collateralized and over-collateralized loans for individuals and protocols
@fraxfinance @0xpibblez 5/ Frax's @curvefinance base pool is up for vote. With Frax providing 1/2 of the 3pool liquidity, a FRAXBP could shake up the state of stableswaps on Curve.

Protocols will gain capital efficiency, and Frax will become a supply sink for CRV
@fraxfinance @0xpibblez @CurveFinance 6/ @ConvexFinance's Frax integration is the best kept secret in DeFi, where users can find several ways to earn CRV, CVX, and FXS rewards.

Frax's CVX holdings have proven to be beneficial in the recent Frax/CRV voting rounds
@fraxfinance @0xpibblez @CurveFinance @ConvexFinance 7/ Despite the UST meltdown, FRAX's collateralization ratio still sits at ~90% and the peg proved resilient, even with recent liquidation events across DeFi.

All developments will translate to more revenues for Frax and more fuel to benefit FXS holders @fraxbull1
8/ For more details about Frax's recent developments and @samkazemian's master plan, read our most recent report:
blockworksresearch.com/research/frax-…

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More from @blockworksres

Mar 28
1/ PumpSwap, the new native DEX from @pumpdotfun, is aiming to shake up Solana's DEX scene.

Pumpfun (bonding curve + PumpSwap AMM) captured 20% of Solana's total DEX volumes yesterday, hitting a new all-time high.

Could this uptrend continue? 🧵 Image
2/ What drives Solana DEX volumes?

Market share by trading pair in the past 30 days:
- Non-Pumpfun Memes: 33%
- SOL-USD: 27%
- Pumpfun Memes: 25%
- Others: 15%

Notably, Pumpfun coins peaked at 43% of the chain DEX volumes in November 2024. Image
3/ Raydium had historically captured 70% of Pumpfun token volume.

Pumpfun has quickly reclaimed that activity, now making up over 60% of market share in this category. Image
Read 7 tweets
Feb 11
1/ Solana's DEX volumes are at all-time highs. What's shaping this dynamic market?

- Memecoins capture around 60% of the action.
- Raydium dominates overall market share.
- Lifinity emerges as a frontrunner in the SOL-USD pair.

Here are the key insights 👇 Image
2/ What are users trading onchain? In the past 90 days:

- 60% of volumes have come from memecoins.
- 25% from the SOL-USD pair.
- Project tokens, AI tokens, LST swaps, and stable-to-stable swaps make up the other 15%. Image
3/ Looking at DEX market share by asset type:

- Raydium dominates memecoin volumes, with a 79% share.
- Lifinity leads in SOL-USD volumes, with a 36% share.
- Orca leads in project tokens, stable-to-stable, and LST swaps, but this represents <10% of total DEX volumes. Image
Read 7 tweets
Feb 4
1/ Solana experienced a noticeable 'Trump Bump' in trading activity after the President launched his own memecoin.

However, in the past two weeks, activity has quickly slowed down to pre-launch levels.

Let's take a closer look🧵 Image
2/ The Trump token initially launched via Meteora and drove a massive spike in Meteora volume dominance on Solana.

The majority of this move only lasted the first weekend however, and since then, Meteora DEX volume share has returned to slightly elevated levels. Image
3/ Similarly, the Moonshot app was an official onboarding partner for the TRUMP token and saw 1M+ new users use the app over the token launch weekend.

But so far it appears none of these users were retained as recurring user counts have returned to their prior average. Image
Read 5 tweets
Jan 13
1/ The AI narrative has quickly swept across the space and AI-related tokens have experienced strong DEX volume growth.

Agent tokens on Base have seen upwards of $300m in daily volume following 2 months of rapid growth.

Let's dig in🧵 Image
2/ On Base, much of the AI agent trading activity stems from @virtuals_io, a tokenized agent creation platform

Virtuals captures 1% of trading volume for agent tokens traded on its platform as swap fees which drive most of its revenues Image
3/ Annualizing Virtuals' current 2025 revenues gives a Forward Net Revenue figure of $168m

At the current market capitalization of $2.5b, Virtuals may be fairly valued

However, continued strength, or additional growth, of revenues will be critical going forward Image
Read 8 tweets
Jan 3
1/ Solana just wrapped up its best year yet, and 2025 is set to be just as explosive:

- Firedancer is on the horizon
- Block size will increase (IBRL)
- Top ecosystem for new developers

Let's dive into the data 👇 Image
2/ In December 2024, Solana recorded $348 million in net inflows from other ecosystems.

This amount was exceeded only by Base and Hyperliquid, which saw $1 billion and $711 million in net inflows, respectively. Image
3/ SIMD 207 was approved by core developers, raising the block limit from 48M to 50M CUs.

While conservative, this change sets the stage for more aggressive block limit increases in the future, enhancing network bandwidth and scalability. Image
Read 10 tweets
Dec 17, 2024
1/ @Base has emerged as a dominant L2, suggesting that Coinbase's distribution advantage is translating into sustainable ecosystem growth.

In just a year and a half since launch, a thriving ecosystem of applications is beginning to emerge...🧵 Image
2/ Base pulled in more inflows than Solana over the last 90 days.

It's flipped Arbitrum in TVL, leads L2s in daily transactions, and matches both in stablecoin market cap.

The growth curve is getting steeper. Image
3/ @AerodromeFi owns the DEX landscape, commanding 62% market share vs Uniswap's 29%.

The protocol's dominance looks sustainable heading into 2025. Image
Read 7 tweets

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