GM, this is your Daily Bolt briefing.
Curious about FraxChain? In this edition we’ll be giving you the primary insights from Frax Founder Sam Kazemian himself. We’ve also included our recent notes on Maverick Protocol, and how they’re integrating with Liquity and the LUSD stablecoin.
Stay alert, stay informed ⬇️
1/ Flywheel DeFi - Frax Finance, Fraxchain and Stablecoins
Preview: Sam, Dave and kiet discuss Frax Finance, $FRAX, stablecoins, Frax Chain, accounts abstraction, and future of Frax Finance. Click here to listen to the full episode (73 mins).
Read our Note (6 mins) and save 67 mins.
Here are some key takeaways:
Sam says that Fraxchain is a proposed solution by the Frax team. He describes it as a hybrid roll-up that pushes the capabilities of the Ethereum mainnet.
He says that the purpose of Fraxchain is to provide a scalable and efficient environment for Frax's operations. As Frax grows and its operations become more complex, it needs a solution that can handle a high volume of transactions without incurring high fees or experiencing slow transaction times. Fraxchain is designed to meet this need.
Sam suggests that Fraxchain could kind of be used as a decentralized bank account that is fully programmable. This means that users could store their assets on Fraxchain and use smart contracts to automate their financial activities, such as earning yield, trading assets, and paying bills.
Sam also talks about the potential for FXS holders to vote on who can operate sequencers for Fraxchain. He says that sequencers are entities that order transactions on a roll-up, and they play a crucial role in maintaining the security and integrity of the roll-up. By allowing $FXS holders to vote on sequencers, Fraxchain can ensure that its operations are controlled by the community, rather than a central authority.
Sam suggests that Fraxchain could be integrated with Frax's other products, such as frxETH. This would allow users to stake their ETH on Fraxchain and receive frxETH in return, which they could then use in other DeFi protocols to earn yield.
Sam talks about the upcoming launch of Frax V3, the third version of the Frax protocol. However, he doesn’t provide information about what improvements and new features will be included in Frax V3. He says that this will be a significant update for the Frax ecosystem.
Sam talks about the potential for protocols to issue non-custodial decentralized stablecoins. He says that Frax is looking to expand its stablecoin offerings, potentially creating new stablecoins that are pegged to different assets or currencies.
Sam also says there is potential for more decentralized self-serve $FXS gauges. A self-serve $FXS gauge would presumably allow $FXS holders to have more direct control over certain aspects of the protocol.
1/ Maverick - Integration of Liquity and Maverick
Preview: In Maverick’s Twitter Space, Bob from Maverick and Bojan and Sam from Liquity discuss their protocols, capital efficiency, integration of the two protocols, and more. Click here to listen to the full episode (30 mins).
Read our Note (5 mins) and save 25 mins.
Here are some key takeaways:
Maverick is a DeFi infrastructure provider focused on increasing industry efficiency, powered by Maverick AMM.
Liquity is a decentralized borrowing protocol that allows drawing 0% interest loans against ETH used as collateral.
Bob says that Maverick allows anyone to create a distribution of liquidity in a given Maverick pool and then incentivize that liquidity. This is often used by protocols to manage their liquidity and pegs.
Bob says that Maverick Protocol is a DeFi infrastructure provider focused on increasing industry efficiency, powered by Maverick automated market maker (AMM).
He says that capital efficiency refers to the ability of the protocol to maximize the utility of the assets it holds. In other words, a more capital-efficient protocol can generate more returns or liquidity for the same amount of assets.
He talks about the mathematical model behind Maverick, which allows it to achieve higher capital efficiency compared to other AMMs.
He also adds that LUSD is gaining traction on zkSync as a stablecoin.
Bob believes that LUSD is here to stay and that Maverick will continue to iterate and support protocols that want to onboard in the $LUSD space.
Sam says that LUSD is now on a few different chains including Arbitrum, Optimism, and zkSync, and is being used as collateral. He also says the resurgence of Boosted LUSD (bLUSD), another token from their sister product, is gaining traction.
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