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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.
“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
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
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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.
$OHM will also join the alliance https://twitter.com/stablekwon/status/1510038256150540288
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.
$OHM will also join the alliance https://twitter.com/stablekwon/status/1510038256150540288
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 die
https://twitter.com/ercwl/status/1510175656553897990
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
https://twitter.com/ercwl/status/1510175656553897990
5/
4Pool will have 2 initial impacts:
DAI liquidity will drop dramatically and may depeg. $MKR price likely drops.
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:
DAI liquidity will drop dramatically and may depeg. $MKR price likely drops. Farmers will scramble to join the 4Pool, increasing liquidity for UST and FRAX, which are the primary decentralized stablecoins in DeFi. This boosts $FXS
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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'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'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
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
11/
$FXS also has 3 major catalysts approaching:
$FPI - a coin that adjusts for inflation, with fees going to FXS
FraxSwap - a next-gen AMM to enable DAOs to manage their POL
FraxLend - a lending protocol that will boost FRAX and FPI usage https://twitter.com/GoodPepe_/status/1505369081054384129
$FXS also has 3 major catalysts approaching:
$FPI - a coin that adjusts for inflation, with fees going to FXS FraxSwap - a next-gen AMM to enable DAOs to manage their POL FraxLend - a lending protocol that will boost FRAX and FPI usage https://twitter.com/GoodPepe_/status/1505369081054384129
12/
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
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
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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.
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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/
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/
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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
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
