Last month, @fraxfinance launched their liquid staking service and related token $frxETH
A thread 🧵to talk about $frxETH, and why I think it goona be the biggest challenger for Lido and $stETH 👇
Keep reading!
A thread 🧵to talk about $frxETH, and why I think it goona be the biggest challenger for Lido and $stETH 👇
Keep reading!
(1)
Let me introduced the mechanism of $frxETH first.
Users can deposit their ETH into the validator ran by frax finance and mint $frxETH.
Different with Lido’s stETH rebase mechanism, $frxETH is constant and holding $frxETH cannot generate yield
Let me introduced the mechanism of $frxETH first.
Users can deposit their ETH into the validator ran by frax finance and mint $frxETH.
Different with Lido’s stETH rebase mechanism, $frxETH is constant and holding $frxETH cannot generate yield
(2)
Two choice for users to earning rewards
First. Staking $frxETH to mint sfrxETH. sfrxETH is ERC-4626 vault and accumulates staking yield of Frax ETH validators.
The rates of frxETH:sfrxETH is changeable, holders will earn reward when redeem frxETH back.
Curreny APY is 4.72%
Two choice for users to earning rewards
First. Staking $frxETH to mint sfrxETH. sfrxETH is ERC-4626 vault and accumulates staking yield of Frax ETH validators.
The rates of frxETH:sfrxETH is changeable, holders will earn reward when redeem frxETH back.
Curreny APY is 4.72%
(3)
Another choice is become Liquidity Providers for frxETH/ETH pool on Curve,and deposit LP token on Convex.
Instead of depositing ETH and earning #ETH PoS emissions. The reward as $frxETH/ETH LP is $CRV, $CVX and $FXS
Now Let me explain why I am so bullish on $frxETH
Another choice is become Liquidity Providers for frxETH/ETH pool on Curve,and deposit LP token on Convex.
Instead of depositing ETH and earning #ETH PoS emissions. The reward as $frxETH/ETH LP is $CRV, $CVX and $FXS
Now Let me explain why I am so bullish on $frxETH
(4)
Remember, @fraxfinance is the largest holder in DAO CVX and I believe they will take advantages of it on #CurveWar.
They can use bribes and CVX voting power to direct curve emission toward $frxETH/ETH pool
Remember, @fraxfinance is the largest holder in DAO CVX and I believe they will take advantages of it on #CurveWar.
They can use bribes and CVX voting power to direct curve emission toward $frxETH/ETH pool
(6)
Meanwhile, those who choose to be $frxETH/ETH LP is actually gives up ETH staking rewards.
Forfeit staking reward will flow back to #sfrxETH and further boost the APY for sfrxETH stakers.
Meanwhile, those who choose to be $frxETH/ETH LP is actually gives up ETH staking rewards.
Forfeit staking reward will flow back to #sfrxETH and further boost the APY for sfrxETH stakers.
(7)
So the $frxETH flywheel creates by @fraxfinance👇
@fraxfinance direct CRV emission -> high APR for frxETH/ETH💰 -> frxETH supply 📈 -> more revenue for frax Validator💵 -> distributed to sfrxETH💸-> higher APR for sfrxETH -> frxETH supply📈 and continue..
So the $frxETH flywheel creates by @fraxfinance👇
@fraxfinance direct CRV emission -> high APR for frxETH/ETH💰 -> frxETH supply 📈 -> more revenue for frax Validator💵 -> distributed to sfrxETH💸-> higher APR for sfrxETH -> frxETH supply📈 and continue..
(8)
Since bribes on Nov 15th, Based on dune analysis dashboard.
both $frxETH supply and number of frax validators double. Juicy APR attracts ETH holders flock in even right now the market still in the shadow of FTX collapse.
Since bribes on Nov 15th, Based on dune analysis dashboard.
both $frxETH supply and number of frax validators double. Juicy APR attracts ETH holders flock in even right now the market still in the shadow of FTX collapse.
(9)
From data, we can see $frxETH have good performance since launched.
Even currently Lido take up the majority of market share in Liquid Staking narratives, they still cannot ignore the challenge from @fraxfinance.
From data, we can see $frxETH have good performance since launched.
Even currently Lido take up the majority of market share in Liquid Staking narratives, they still cannot ignore the challenge from @fraxfinance.
(10)
One more thing. @fraxfinance launched at 2020 and start with their algo-stables $Frax.
Right now their whole ecosystem become more mature: #AMO, FPI&FPIS, #FraxLend, Fraxferry and recently frax Liquid staking.
Look forward to see their performance in the future
One more thing. @fraxfinance launched at 2020 and start with their algo-stables $Frax.
Right now their whole ecosystem become more mature: #AMO, FPI&FPIS, #FraxLend, Fraxferry and recently frax Liquid staking.
Look forward to see their performance in the future
Some mentions
Frax finance related
@DeFiDave22
@samkazemian
@fraxbull1
@CryptoGrills
@flywheelpod
Defi alphas
@rektdiomedes
@DAdvisoor
@zerototom
@defi_mochi
@Crypto_Bandits
@CryptoDragonite
@Subli_Defi
@CompleteDegen
@Only1temmy
@crypto_linn
@TheDeFISaint
@archipelabro
Frax finance related
@DeFiDave22
@samkazemian
@fraxbull1
@CryptoGrills
@flywheelpod
Defi alphas
@rektdiomedes
@DAdvisoor
@zerototom
@defi_mochi
@Crypto_Bandits
@CryptoDragonite
@Subli_Defi
@CompleteDegen
@Only1temmy
@crypto_linn
@TheDeFISaint
@archipelabro
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