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1/ THREAD
“4Pool Alliance: $LUNA and $FXS Win the Curve War”
In this thread, I explain 4Pool, the new alliance between LUNA, $BTRFLY and FXS to dominate the stablecoin war, boosting stability for UST and massively increasing $FRAX issuance, causing $FXS price to rocket.
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rug van hand met omlaag wijzende wijsvinger" aria-label="Emoji: Rug van hand met omlaag wijzende wijsvinger">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧵" title="collectie" aria-label="Emoji: collectie">
“4Pool Alliance: $LUNA and $FXS Win the Curve War”
In this thread, I explain 4Pool, the new alliance between LUNA, $BTRFLY and FXS to dominate the stablecoin war, boosting stability for UST and massively increasing $FRAX issuance, causing $FXS price to rocket.
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What is 4Pool?
Do Kwon is the genius behind $LUNA that is saving the crypto bull market with his BTC treasury buys
Today, Kwon announced a mastermind plan to win the Curve War with a new 4Pool Stablecoin Alliance that includes $BTRFLY and $FXS
https://twitter.com/stablekwon/status/1510021707377287170">https://twitter.com/stablekwo...
What is 4Pool?
Do Kwon is the genius behind $LUNA that is saving the crypto bull market with his BTC treasury buys
Today, Kwon announced a mastermind plan to win the Curve War with a new 4Pool Stablecoin Alliance that includes $BTRFLY and $FXS
https://twitter.com/stablekwon/status/1510021707377287170">https://twitter.com/stablekwo...
3/
The plan is to create a new “4Pool” on Curve containing USDC-USDT-UST-FRAX
$LUNA and $FXS will use their CVX and engage $BTRFLY to use its CVX to vote all their emissions to 4Pool, incentivizing deep liquidity.
https://abs.twimg.com/emoji/v2/... draggable="false" alt="‼️" title="Dubbel uitroepteken" aria-label="Emoji: Dubbel uitroepteken"> $OHM will also join the alliancehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="‼️" title="Dubbel uitroepteken" aria-label="Emoji: Dubbel uitroepteken"> https://twitter.com/stablekwon/status/1510038256150540288">https://twitter.com/stablekwo...
The plan is to create a new “4Pool” on Curve containing USDC-USDT-UST-FRAX
$LUNA and $FXS will use their CVX and engage $BTRFLY to use its CVX to vote all their emissions to 4Pool, incentivizing deep liquidity.
4/
As a result, 4Pool will have the highest APR on Curve, drawing deep liquidity, and also draining liquidity from 3Pool, the DAI pool that has the current highest liquidity on Curve and has been the historical source of DAI usage in DeFi
$DAI may diehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="☠️" title="Doodshoofd met gekruiste beenderen" aria-label="Emoji: Doodshoofd met gekruiste beenderen"> https://twitter.com/ercwl/status/1510175656553897990">https://twitter.com/ercwl/sta...
As a result, 4Pool will have the highest APR on Curve, drawing deep liquidity, and also draining liquidity from 3Pool, the DAI pool that has the current highest liquidity on Curve and has been the historical source of DAI usage in DeFi
$DAI may die
5/
4Pool will have 2 initial impacts:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="1⃣" title="Nummertoets een" aria-label="Emoji: Nummertoets een">DAI liquidity will drop dramatically and may depeg. $MKR price likely drops. https://abs.twimg.com/emoji/v2/... draggable="false" alt="☠️" title="Doodshoofd met gekruiste beenderen" aria-label="Emoji: Doodshoofd met gekruiste beenderen">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="2⃣" title="Nummertoets twee" aria-label="Emoji: Nummertoets twee">Farmers will scramble to join the 4Pool, increasing liquidity for UST and FRAX, which are the primary decentralized stablecoins in DeFi. This boosts $FXS
4Pool will have 2 initial impacts:
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As a result of increased UST and FRAX liquidity, DeFi user confidence in UST and $FXS will rise, and usage across DeFi will increase, fueling a virtuous cycle:
More liquidity -> More usage -> More issuance -> More stability, and so on
As a result of increased UST and FRAX liquidity, DeFi user confidence in UST and $FXS will rise, and usage across DeFi will increase, fueling a virtuous cycle:
More liquidity -> More usage -> More issuance -> More stability, and so on
7/
Which token benefits most from the 4Pool Alliance?
$LUNA gets higher $UST stability
$BTRFLY will likely benefit, but price is up 350% in 30 days - it& #39;s risky and needs time to breathe before the next leg up
$FXS is the safer, sustainable play for a steady price increase
Which token benefits most from the 4Pool Alliance?
$LUNA gets higher $UST stability
$BTRFLY will likely benefit, but price is up 350% in 30 days - it& #39;s risky and needs time to breathe before the next leg up
$FXS is the safer, sustainable play for a steady price increase
8/
As a sidenote, I love Redacted Cartel
It is one of the most genius projects in DeFi
But $BTRFLY is up 350% in 30 days
A prudent move for newly-rich $BTRFLY holders would be to hedge - take healthy profits and roll them into an $FXS position
Stability is valuable in DeFi
As a sidenote, I love Redacted Cartel
It is one of the most genius projects in DeFi
But $BTRFLY is up 350% in 30 days
A prudent move for newly-rich $BTRFLY holders would be to hedge - take healthy profits and roll them into an $FXS position
Stability is valuable in DeFi
9/
I expect $FXS to have the highest mid-term price appreciation in % terms as a result of the 4Pool Alliance.
And with the scandals that have plagued MIM, $FRAX is the only decentralized stablecoin with true adoption aside from UST.
I expect $FXS to have the highest mid-term price appreciation in % terms as a result of the 4Pool Alliance.
And with the scandals that have plagued MIM, $FRAX is the only decentralized stablecoin with true adoption aside from UST.
10/
As a partially-backed and partially-algorithmic stablecoin, FRAX has advanced tech to auto-balance the peg and protect stable value
The details are dense, but the takeaway is this:
As FRAX issuance increases, $FXS price increases https://docs.frax.finance/seigniorage ">https://docs.frax.finance/seigniora...
As a partially-backed and partially-algorithmic stablecoin, FRAX has advanced tech to auto-balance the peg and protect stable value
The details are dense, but the takeaway is this:
As FRAX issuance increases, $FXS price increases https://docs.frax.finance/seigniorage ">https://docs.frax.finance/seigniora...
11/
$FXS also has 3 major catalysts approaching:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="1⃣" title="Nummertoets een" aria-label="Emoji: Nummertoets een"> $FPI - a coin that adjusts for inflation, with fees going to FXS
https://abs.twimg.com/emoji/v2/... draggable="false" alt="2⃣" title="Nummertoets twee" aria-label="Emoji: Nummertoets twee"> FraxSwap - a next-gen AMM to enable DAOs to manage their POL
https://abs.twimg.com/emoji/v2/... draggable="false" alt="3⃣" title="Nummertoets drie" aria-label="Emoji: Nummertoets drie"> FraxLend - a lending protocol that will boost FRAX and FPI usage https://twitter.com/GoodPepe_/status/1505369081054384129">https://twitter.com/GoodPepe_...
$FXS also has 3 major catalysts approaching:
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How high can $FXS go?
The all-time high price is $40. $FXS price is currently consolidating around $30.
And remember: FRAX stablecoin issuance boosts $FXS price
Current Stablecoin Issuance Stats:
UST: $16.5b
DAI: $9b
MIM: $3b
FRAX: only $2.5bhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="‼️" title="Dubbel uitroepteken" aria-label="Emoji: Dubbel uitroepteken">https://abs.twimg.com/emoji/v2/... draggable="false" alt="👀" title="Ogen" aria-label="Emoji: Ogen">
How high can $FXS go?
The all-time high price is $40. $FXS price is currently consolidating around $30.
And remember: FRAX stablecoin issuance boosts $FXS price
Current Stablecoin Issuance Stats:
UST: $16.5b
DAI: $9b
MIM: $3b
FRAX: only $2.5b
13/
As FRAX issuance climbs to $16.5b (taking the MIM and DAI shares and matching UST issuance in 4Pool), that’s an 8x increase.
If $FXS price increases proportionally, $240 enters the realm of possibility. Even at $240, the $FXS market cap would be less than 25% of $LUNA mc.
As FRAX issuance climbs to $16.5b (taking the MIM and DAI shares and matching UST issuance in 4Pool), that’s an 8x increase.
If $FXS price increases proportionally, $240 enters the realm of possibility. Even at $240, the $FXS market cap would be less than 25% of $LUNA mc.
14/
Conclusion
The 4Pool Alliance will end the Curve War
$UST and $FRAX are the stablecoin winners, and $FXS price will rocket to match the massive increase in issuance.
Also remember: while holding $FXS, you can stake on Convex Finance for 31.4% APR
https://frax.convexfinance.com/ ">https://frax.convexfinance.com/">...
Conclusion
The 4Pool Alliance will end the Curve War
$UST and $FRAX are the stablecoin winners, and $FXS price will rocket to match the massive increase in issuance.
Also remember: while holding $FXS, you can stake on Convex Finance for 31.4% APR
https://frax.convexfinance.com/ ">https://frax.convexfinance.com/">...
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As always, if you appreciate the alfa, please follow and retweet the thread (the first tweet in the thread is below for convenience)
Best wishes in your crypto journey! https://twitter.com/kamikaz_ETH/status/1510218881105031170">https://twitter.com/kamikaz_E...
As always, if you appreciate the alfa, please follow and retweet the thread (the first tweet in the thread is below for convenience)
Best wishes in your crypto journey! https://twitter.com/kamikaz_ETH/status/1510218881105031170">https://twitter.com/kamikaz_E...