February 11, 2021: 新年快樂!🧧🎆 + Burners 🔥 $FRAX, $TUSD

Curve Market Recap

It’s the year of the “0x” — so send all your 紅包 to valid ETH addresses!

Here are today’s trends to watch from Curve Market Cap

We ring in the lunar new year with a lot of activity on Curve’s governance forums, the best way to see and influence the upcoming direction of Curve.

The DAO vote on CIP #49 opened yesterday, a massive update to improve the efficiency of the burners. Many of you may never directly interact with the burners, but it is the process by which admin fees are efficiently converted to 3pool veCRV.

We endorse this proposal, although this endorsement is basically irrelevant because it looks to already have such a large “Yes” vote margin it would make Saddam Hussein jealous.

Burners currently cost a lot of gas because they convert synths inefficiently. We all know gas is too expensive. The changes look non-controversial. Plus it adds rewards to Iron Bank and USDP, a nice bonus. Burn some gas today voting for this and you can save gas in the long run.

$FRAX

Elsewhere in governance, we witness the conclusion a pair of metapools signal votes.

Seemingly more controversial is sCIP#30, a nail-biter of a signal vote to deploy a FRAX metapool, running at a spicier 99.8% to 0.2% margin.

Paolo Anziano @paoloanziano

So cool! Looking forward to having $FRAX finally added to @CurveFinance after it proved to be pegged to the dollar since inception and very capital-efficient with its CR of 86% Do some good use of those $veCRV and get the first #fractional #algorithmic #StableCoin on Curve $CRV

¤ Frax Finance ¤ @fraxfinance

Our @CurveFinance gov vote is live! We just started $FXS rewards for our https://t.co/fhOBMfhybK pool and hope that as we ramp up rewards and TVL the $CRV community welcomes $FRAX to their homepage ☺️ Thanks to @AndreCronjeTech @newmichwill @charlie_eth https://t.co/vAkjlNaZC6

FRAX touts itself as the “world’s first fractional-algorithmic stablepool” — meaning it is partially backed by collateral and partially backed algorithmically. FRAX has been live for several months and thus far it has held its balance.

¤ Frax Finance ¤ @fraxfinance

Anyone who says algo coins are unstable stablecoins, make sure to show them this beautiful graph so they don’t miss the facts. Can you see the $FRAX price line? No you can’t. Because it’s perfectly superimposed on the $1 line 👌 source @CapitalWarp

Tyler Reynolds @tbr90

I am surprised FRAX isn’t a bigger deal It has done incredibly well at keeping the peg so far despite the high gas fees making it harder to arbitrage

For more details, you can review their repo or check out founder Sam Kazemian’s recent appearance with Bobby Ong on the CoinGecko podcast:

CoinGecko @coingecko

G'morning! Start off your day off with a brand new episode of CoinGecko's Podcast ☕️ Together with @samkazemian, Founder at @fraxfinance, we discussed $FRAX, problems with stablecoins, & more! 🎧 Listen here: gcko.io/yzezapv 📺. Watch here: gcko.io/ehbl6l7

Sam Kazemian ¤ @samkazemian

Thanks for having me on the @coingecko podcast to talk about @fraxfinance! 2021 will be the year of DeFi and STABLECOINS! 🚀 Particularly algo stablecoins like $FRAX My guess: the total stable mcap will be over $500 billion by EOY. A 25x increase from 2020. Let’s see!

Bobby Ong @bobbyong

Fractional algorithmic stablecoins are one of the most interesting areas of development recently and I am fascinated with the design elements behind FRAX and its plans for its future. If you are not sure what FRAX is, I wrote about it previously: https://t.co/MUI1bd1CRy

The signal vote remains open for another day. Vote early, vote often! #DEMOCRACY

$TUSD

On the flip side from $FRAX’s fractional algorithmic backing is TrueUSD ($TUSD), which advertises its incredibly tight paper trail. Their signal vote to add a $TUSD metapool, sCIP#29, just closed with 100% backing.

TrueUSD @tusd_official

We've got 1.21MM #veCRV vote for adding $TUSD as a #Metapool on @CurveFinance! Thanks Curve Dao for your 100% support for $TUSD! 🙌🙌🙌 And this sCIP will be closed on Feb 11, 2021, 8 PM, we still need your support! signal.curve.fi/#/curve/propos…

TrueUSD touts itself thusly:

TrueUSD (TUSD) the first and only stablecoin fully collateralized by US Dollars and independently attested live on-chain. The ERC20 token uses multiple escrow accounts and third-party attestations to reduce counterparty risk, provide transparency, and prevent fraud

They also provide a dashboard with live attestations of collaterization:

$TUSD’s audit trail has been cited as shoring up a weakness of $USDT:

noodles @crypto_noodles

(9) $USDC + $TUSD tackled three key problems that $USDT failed to do: - 1 Stablecoin == 1 USD - Verifiable dollar reserves for each coin - Time-efficient movement from bank acct to crypto, and vice versa.

With 2020 everywhere in the rear view mirror, we look forward to an exciting year ahead for Curve!

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