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Sep 15 8 tweets 4 min read
1/ With the rollouts of Fraxswap and Fraxlend, @fraxfinance has become the first DeFi protocol to offer stablecoin, liquidity, and lending services under one umbrella on #Ethereum.

Let's see how Frax is leveraging full-stack control to support the $FRAX stablecoin. 🧵
2/ $FRAX is a partially collateralized algorithmic stablecoin backed by $USDC and $FXS, the protocol’s native governance token.

While the minting and redemption value is held constant, the proportion of $USDC to $FXS backing $FRAX depends on its dynamic collateral ratio.
3/ Frax V1 solidified the idea of an Algorithmic Market Operations (AMOs) controller that could serve as the protocol’s base stability mechanism.

Building on this, Frax V2 introduced a set of generalized AMOs to carry out arbitrary $FRAX monetary policy on the open market.
4/ @fraxfinance's AMOs have allowed the protocol to adapt to its surrounding market conditions.

However, Frax’s reliance on other DeFi protocols limited its ability to have full autonomy over its monetary policy.

As such, Frax created Fraxswap and Fraxlend.
5/ Fraxswap is the first live implementation of a TWAMM.

This AMM functions the same as a standard AMM, allowing anyone to permissionlessly trade against it or provide liquidity, while also allowing traders to process long-term orders in a cost-effective manner.
6/ Leveraging Fraxswap gives @fraxfinance more granular control over its monetary policy.

Fraxswap enables Frax to conduct ongoing monetary policy and forward guidance like the U.S. Federal Reserve but in an automated and transparent manner.
7/ Fraxlend allows users to create a borrowing market between any pair of ERC-20 tokens that have a @chainlink data feed.

This approach contains risk to individual asset pairs without impacting the safety of other pools.
8/ DeFi protocols like @fraxfinance are beginning to recognize their need for control over stablecoin issuance, liquidity systems, and lending markets.

Explore @chasedevens' full report on The DeFi Trinity: @fraxfinance's Quest for DeFi Dominance.…

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More from @MessariCrypto

Sep 14
1/ While the current set of non-custodial liquid staking protocols has been successful, there is still room for development.

@swellnetworkio believes it has learned from its competitors, offering a new way for $ETH holders to stake and earn a yield in @ethereum. 🧵 Image
2/ So how does @swellnetworkio work?

At a very high-level Swell operates quite differently from other Ethereum liquid staking protocols. Image
3/ @swellnetworkio's node operator set is represented by two groups, verified and independent operators.

Node operators will set their commission rate, the amount of additional yield sent to their Swell fee pool, and how their returns are displayed, creating an open marketplace.
Read 8 tweets
Sep 13
1/ While we aren't the type to choose favorites, choosing sessions to attend while at a conference like #Mainnet2022 can be difficult.

With 200+ speakers, 150+ projects, and 4,000+ attendees there is certainly plenty to do and see.

Here's a look at some can't-miss sessions. 🧵 Image
2/ ~@AptosLabs on the Move Movement

Aptos and @Mysten_Labs are two chains launching in Q4 with sky-high expectations.

Both chains utilize the Move language developed during their genesis as Facebook’s Libra project.

Will Move blockchains be the next big trend in crypto?
3/ ~@solana's @aeyakovenko on Why Mobile is Web3’s Missing Link

Solana launched the Saga phone in early 2022.

They also launched the @solanamobile Stack, a framework for Android that allows developers to create mobile experiences for wallets and apps on Solana.
Read 6 tweets
Sep 12
1/ @coinbase has proposed onboarding @MakerDAO as the first client of its $USDC Institutional Rewards program.

This move involves 33% of the $USDC from Maker's Price Stability Module (PSM) to @coinbase Prime, an estimated $1.60B, for a yield of 1.5%.

What's the impact?🧵 Image
2/ To facilitate the onboarding to @coinbase Prime custodial service will be provided by Coinbase Custody International, Ltd. (CCI).

This arrangement is supposed to allay fears that the government could pressure Coinbase, Inc. into seizing a client’s asset.
3/ The proposal comes against the backdrop of the Tornado Cash sanction and announcement that @binance would end support for $USDC trading pairs.

Securing @MakerDAO as a Prime customer would be a huge win for the company’s reputation. Image
Read 4 tweets
Sep 9
1/ With less than seven days until the Merge, crypto natives and protocols are preparing.

What recent events and trends have shaped the past couple of weeks?🧵
2/ Since the unwind of #3AC and @CelsiusNetwork in June, #Ethereum liquid staking derivatives have traded on secondary markets at a material discount to the price of $ETH.

@LidoFinance's $stETH, reached a 6.6% discount during the forced selling.
3/ @solana NFTs have made a strong comeback over the last two weeks following a summer of low interest.

Daily NFT sales volume and unique buyers recently spiked back to all-time-high levels set in May.
Read 4 tweets
Sep 8
1/ @Stepnofficial once accounted for 20% of the daily fee-paying users on @solana.

After its crash, the team has been busy adjusting the game to improve user experience and tokenomics.

Can STEPN be fixed? Or is the game's model past saving?🧵
2/ During Q2 profits were sky-high at $122.5M. Daily active users (DAU) increased 100x.

That explosive growth was followed by an explosive decline.

DAU dropped by 80%, reducing revenue and leaving existing players with no new market participants to trade with.
3/ On top of declining demand, @Stepnofficial saw the supply of its utility token $GST overinflate.

In an effort to reduce $GST supply, @Stepnofficial has introduced additional token sinks, expanded into other ecosystems to increase demand, and reduced cheating.
Read 4 tweets
Sep 7
1/ Last month we launched part 1 of the "bear necessities" series, evaluating trends that could catalyze the next bull market.

With the same framework in mind, let's assess the infrastructure trends that could catapult crypto out of the bear.🧵 Image
2/ A new batch of Layer-1s seeking to solve crypto's user experience and scalability challenges.

These upstart Layer-1s are more specialized than their predecessors and can thus offer much faster execution, lower transaction costs, and specialized components. Image
3/ Modularity is gaining attention on both a functional basis and a chain construction basis.

Functional modularity, popularized by rollups and @CelestiaOrg, involves creating standalone chains to each handle a different core blockchain function. Image
Read 6 tweets

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