Hot Spot Focus——RWA is about to be launched, a look at Frax’s future product planning and potential impact

FXS received good reviews from the market during the CRV storm due to FraxLend's dynamic interest rate design to protect borrowers; at the same time, Frax Protocol founder Sam initiated a governance proposal on August 4 to promote RWA business, which also attracted some market attention. The main points are as follows:

1. FinresPBC is a non-profit company established at the beginning of this year, so all income generated by the assets held on behalf of Frax Protocol will be returned to the protocol except for the company's operating costs;

2. FinresPBC does not participate in the development, operation and governance of the Frax protocol, nor does it participate in any other profit-making activities (mortgage, lending, pledge or other commercial activities) to ensure the purity and stability of its business;

3. Currently, FinresPBC’s partner bank is Lead Bank, which provides compliant financial services for the Crypto protocol. FinresPBC is also actively expanding more Crypto-friendly financial partners;

4. FinresPBC's future business operations include: minting/redeeming USDP and USDC; obtaining US dollar deposit income in the IntraFi savings account insured by the US Federal Deposit Insurance Corporation; purchasing US Treasury bonds in a separate account to earn interest;

5. FinresPBC will publish asset details, reserve reports and operating costs every month. FinresPBC can provide 7*24 hours of custody asset access for the Frax Protocol and use reserves to repurchase and destroy FRAX or mint USDP and USDC and send them to Frax Protocol AMO as needed.

The possible impact of Frax's move: The scale of FRAX stablecoins is currently declining due to the squeeze of Maker's vigorous promotion of RWA business, especially the current deposit rate of Maker DSR is as high as 8%, and some market participants have turned to holding Dai for interest. The reason why the current income in DSR is much higher than the income of US Treasury bonds is that there is a scissors gap between the scale of Maker's purchase of Treasury bonds and the interest earned on Dai on the protocol side, and this yield rate currently seems unsustainable. The specific details of Frax's RWA business have not yet been disclosed, but due to its similarity with the ETH staking business structure, combined with the currently known information, it is speculated that Frax can obtain a very high yield to complete the product launch in the early stage of RWA business due to the superposition of Treasury bond yields and Crv incentives when the business scale has not started. In the medium and long term, if, as Sam said, the operating costs of FinresPBC are much lower than those of competing products, Frax RWA business may have long-term competitiveness and help expand the market share of FRAX stablecoins.

We have summarized the recent favorable currencies, which can be used as the focus of attention:

1. Waves released the L2 white paper this week, and the incentive policy power back has begun

2. Rune will launch lending and derivatives business, increase token demand, reduce circulation, and cause deflation

3. RLC revealed on Twitter that it may cooperate with Intel in the future

4. Pyr has airdrops, and there will be favorable public announcements at the end of August and the beginning of September (pay attention to the time node)

5. VRA’s suggestions for changing the magic revenue of the token economy will end at the end of August.

6. FETS and#OCEANare likely to announce a collaboration next

7. Dydx will be launched on the mainnet in September/November

8. CKB will start its first halving in November, and usually hype it up 1/2 months in advance

9. TKO Binance acquired the Indonesian exchange last year and is currently preparing to expand and is negotiating with investors

10. PLA new games will be launched in the next few days

11. GFT web wallet will be launched in about a week

APT peaked at 8 for the fourth time. Although it has favorable support and staged another rise before unlocking, it will not be so fast at this stage. It will have to go around a few more times on this basis. The bottom of the market is the most difficult to break through. It needs to exchange time for space. It will not lead the market after the big trend, so there is no need to worry when you see it start to form.

ANT has been entangled around 4.4 for nearly two months. With a leisurely upward trend, it is still in the main rising channel. If it breaks through 4.4 in a real sense, it will usher in a wave of rapid rise. You can focus on this.

PEPE price first returned to the support point before the rise, and made a wave of upward rebound yesterday, but the strength of this wave will obviously not be too great. There are definitely not a few trapped chips at the pressure point of the two big positive lines at the top. Only by slowly releasing the chips above will there be a chance of a big rebound.

As a representative of domestic public chains, CFX has performed well in the first half of this year. It has been 21 weeks since the highest point. Last week, it was mentioned many times that people should pay attention to this currency in the near future. Compared with a CFX product, it is more important to master the analysis logic. After mastering the fishing method, you can have endless fish, especially in the current bear market. Knowledge reserve and improving cognition are the most important things.

When talking about CFX again, we have to mention the cycle. Doing business requires the right time, right place and right people. The same is true for ambushing a currency. Timing is very important. Fibonacci's series 3, 5, 8, 13, 21, 34... This series is often used in cycle turning points. In a bear market, there must be a cycle turning point of at least 13. In a bull market, the callback is usually before the cycle turning point of 13. If the key time can be superimposed on the key position, the winning rate will naturally be high when the two factors are combined.

Finally, there are still many things that are not written down, such as specific opportunities and specific decisions. These things are often not something that can be summarized in one article.