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

Apr 21
1/ With over $3B in liquidity, @pendle_fi dominates the vertical in which it operates. Tailwinds are present for growing Pendle’s utilization, distribution, and revenue.

- PTs coming to @aave
- Permissionless listings
- YT take rate from 3% to 5%
- Boros upgrade

🧵 Image
2/ Pendle's PTs can make for highly attractive collaterals on money markets.

Particularly for carry trades, the fixed yield offered by PTs can reduce the variance and uncertainty in the realized yield on the long leg of these strategies.

Historically, @MorphoLabs has won the lion's share of lending against these instruments, given permissionless vault creation.Image
3/ However, Aave recently passed an ARFC approving the listing of PTs on the main market, beginning with USDe and sUSDe PTs.

As eligible collateral on the largest money market offering a demand venue for growing utilization of the instruments, Pendle's PTs can benefit from broader distribution and utility.
Read 7 tweets
Apr 18
1/ Despite ending its points program last year, @HyperliquidX has maintained a dominant market position with nearly 80% of perpetuals DEX volumes.

Hyperliquid's success stems primarily from rapid, relevant token listings and superior UX for users and market makers. Image
2/ Currently, it is the only DEX that has been able to compete with CEX volumes.

Over the past three months, the platform has averaged $6.4B in daily trading volume, which sits just above 50% of the daily trading volumes of Bybit and OKX.
3/ Fees generated on HyperCore are divided between the HLP and the assistance fund. The assistance fund uses fees to buyback the HYPE token.

From February until now, the assistance fund has bought a cumulative $96M USD in HYPE, which is approximately $1.4M daily. Image
Read 8 tweets
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

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