Frax Finance

03 Apr 2025 05:03

I posted my thoughts about the Circle IPO yesterday https://x.com/samkazemian/status/1907233870745055537

Frax Finance

03 Apr 2025 04:29

Report sent

Frax Finance

03 Apr 2025 04:26

L1 valuation is based off NVT, network value to transaction ratio

Frax Finance

03 Apr 2025 04:09

No but I will personally be super mean to any fraximalist that tries to value Frax commodity tokens as P/E DCF tokens after the token upgrade to an L1 asset. 😡 So don't do it, or you'll get your fraximalist badge revoked.

Frax Finance

03 Apr 2025 02:53

Oh snap FXS is the new safe haven

Frax Finance

02 Apr 2025 21:33

@southseacompany @U318GE @Grills_R I got us a bump in incentives for this new epoch. Lmk what you think https://bunni.xyz/explore/pools/mainnet/0x690f92bc0598b82fa7dfea7cba108f54da349da46b22bc634795a9d34617b22c?ref=0xe7Edf25702f5EE446f55Fe21c579F9018f3d5Bc4

Frax Finance

02 Apr 2025 19:16

Good luck catching "His Excellency"

Frax Finance

02 Apr 2025 19:14

TLDR = It all stemmed from accusations of FDT misappropriating $456M of TrueUSD (TUSD) collateral reserve.

FDT is TUSD's custodian, and Justin Sun bought TUSD's issuer in 2023. Now he is coming out today accusing FDT of insolvency, and it's causing FDUSD to depeg.

FDUSD is FDT's stablecoin that they worked together with CZ on to replace BUSD on Binance because BUSD was getting regulatory heat from the SEC.

https://www.coindesk.com/markets/2025/04/02/tron-s-justin-sun-bailed-out-tusd-as-stablecoin-s-usd456m-reserves-were-stuck-in-limbo

Frax Finance

02 Apr 2025 19:04

https://x.com/justinsuntron/status/1907453216524243373

Frax Finance

02 Apr 2025 18:05

Yeah, so many options to make it work.

Frax Finance

02 Apr 2025 16:50

even in worst case where sfrxUSD cannot be done (which I have no idea), there are alternatives like distributing these rewards to make the ecosystem bigger like incentivizing LP (i.e., frxUSD-OHM). I can't imagine the pressure that frax is in, so much respect for them

Frax Finance

02 Apr 2025 16:11

https://x.com/milesdeutscher/status/1907387557232730361?s=46&t=0DwEZHXjuJYvM3vbA-1g1g

Frax Finance

02 Apr 2025 15:26

Then Frax can just work around it by distributing profits to staking tokens instead of giving the payment coin yield directly. I would be shocked if they didn't allow for a dual token model though where a separate non-payment stablecoin token gets the yield.

Frax Finance

02 Apr 2025 15:23

I would be surprised if that happened. What would happen to that yield if it can't be distributed to anyone?

Frax Finance

02 Apr 2025 15:22

Yes. But am afraid it may come back in a way that you can't transfer yield to staking tokens as well.

Frax Finance

03 Apr 2025 04:40

What do you think of circle IPO valuation at 5B? You think frax valuation should be way higher if value as a commodity token instead of P/E DCF token?

Frax Finance

03 Apr 2025 04:29

I don't think that's true. You can model commodities being burned or used as flows while they still double as a scarce source of value as long as the token itself isn't being revalued as a tech stock. For example, Frax (prev. FXS) will have the programmatic burn engine on Fraxtal chain similar to ETH's EIP1559. But that doesn't mean it should be thought of as a dividend/buyback. It is more like digital oil that certain infra & services use up and burn. You can model how much of the commodity is burned up as one source of demand side flow while refusing to reclassify the asset as a tech stock paying dividends.

This is how Frax (prev. FXS) should be thought of going forward after the L1 upgrade. Not as a tech stock investment in some kind of fintech platform.

Frax Finance

03 Apr 2025 04:20

It seems inevitable that all crypto assets except BTC and meme will be unconsciously evaluated as P/E DCF assets, and there is no other more intuitive number to express the valuation, which is related to the classification of them by tools like defilama🤔

Frax Finance

03 Apr 2025 03:52

Will Frax switch back to PoW?

Frax Finance

02 Apr 2025 22:48

25% apr on stable is definitely sexy. Should attract tvl for sure now

Frax Finance

02 Apr 2025 19:17

Justin said to stay tuned for "press conference tomorrow at 2 PM HKT, where major global media outlets will be in attendance"

Frax Finance

02 Apr 2025 19:15

First Digital to 'Pursue Legal Action' Over Justin Sun Allegations as FDUSD Price Drops — link | tl;dr

Frax Finance

02 Apr 2025 19:05

FDUSD which is custodied by FDT and listed on Binance is starting to depeg

Frax Finance

02 Apr 2025 18:06

At this time, I do not share your concerns. Many many options to make this all work.

Let’s see how the bill gets finalized.

Frax Finance

02 Apr 2025 17:50

dTRINITY gives out interest rebates for dUSD borrowers instead of yield to holders. I wonder if that could be viewed as a borrowing cost discount instead of yield. The rebates are ultimately funded by sfrxUSD which backs dUSD

Frax Finance

02 Apr 2025 16:11

Stablecoin bill review today

Frax Finance

02 Apr 2025 15:26

It's not in the language of the bills now, so I don't think it's something they're looking to do

Frax Finance

02 Apr 2025 15:24

yield can be distributed to native gov tokens(in this case $frax/$fxs)

Frax Finance

02 Apr 2025 15:22

shareholders will be $frax(now $fxs)

Frax Finance

02 Apr 2025 15:21

It doesn't say anything about shareholders in the company. Just holders of its payment stablecoin.