Insane Alpha from Frax Finance Whales 🐳
$100m worth of tokens know the alpha
Introduction
Hi, dear member of the Racing Crypto Club 🤝
Last week I looked a lot into the whale moves using various Dune Dashboards and other tools I mentioned in my previous newsletter. As I was investigating different wallets further I found interesting whales who have made some massive gains.
This time I have focused more on the Frax whales as I have found a lot of valuable alpha on Twitter about them and wanted to look further into them.
Let’s see what I have found 👀
How it all started
Either we can start with a wallet or a whale. As I have already mentioned I have already found the wallet of one of the biggest FXS holders. His ENS is actually “fraximaxi” so his love for Frax Finance was expected.
He is one of the biggest Frax stackers so far and has a lot of connections to other Frax Whales. Currently circulating mcap of FXS is $461.34m and this whale holds a whopping $42,31m in Frax + $1m in Convex which sums to 9.3% of the current supply
I assume that this whale is a part of an advisor/team as he constantly receives the FXS tokens from the Frax distributing wallet (we will take a better look at it in a sec). The whale is not much into DeFi as he mainly uses Convex and Frax to manage his funds.
Apart from that the whale often trades his Convex rewards for Eth and stakes are on Frax, rn he sits at 79.7 sfrxETH which is a great way to store those rewards and get additional yield on them. Not let’s discover his connection to other whales as I feel that it’s time to find some alpha.
Let’s check the whales’ map via Bubblemaps
The best whale to check the whales and the connection between them is Bubblemaps as it allows you to find the biggest wallets and tx between them in just a few seconds. Let me know if you would like a guide on the crypto research tools that I am using.
Here we see a big chunk of connected wallets including:
fraximaxi.eth
fraxman.eth
lilnegus.eth and many more
They all got the FXS distributed from 0xb74 which distributes the rewards between team/advisors/investors etc. Let’s see what they got 👀
I have started with fraxman.eth as he is also a small Frax whale and somehow has a connection to the fraximaxi.eth. I thought that this might be interesting and went to discover it. It seems that fraxman.eth got $5.8m USDC from fraximaxi.eth.
At first, I wanted to understand where did the fraximaxi find the money as his main bag is locked FXS. It seems that back in 2022 he was actively swapping FRAX for USDC and also getting back the liquidity from Uniswap LPs. After that, the transfer to fraxman.eth was made. It’s been a while ago but it’s important to investigate the connection.
After the fraxman.eth got the USDC he made a chain of transfers with it.
fraxman.eth → 0x4fc → 0x7ba → 0xa9d (Coinbase)
So basically the money went from fraximaxi.eth to fraxman.eth and after a couple of wallets landed on Coinbase. Here is an even better visualization of the following connection.
And here is a better overview of overall FXS distribution to all the investors/team etc. We see here such big names like Binance, Dragonfly, Mechanism, and many others.
As I was going back and forth through the FXS wallets I found another interesting one called “frax-ape.eth”, as you would imagine he has also received multiple FXS rewards. Let’s see what he has 👀
It’s mindblowing to me but it seems like all the whales are just trying to maximize their FXS share as everyone is restaking again and again and all the gains from Convex/Curve are also converted to $ETH/$FXS.
Actually, I had some luck with this whale as he introduced me to the new protocol called StakeDAO where he has around $631k in FXS staked there. So far all the rewards are being further converted to USDC but I will definitely research this protocol more and will write about it in my next newsletter.
If you want to know more about that protocol, be sure to check out the thread from a legendary Smart Ape.
Furthermore, probably all of the whales that I have looked into it are holding $ IQ. Some of them are just adding liquidity to the FraxSwap LP pairs, and another one just holding. I will definitely take a deeper look into the project and will get back to you with another piece of research.
Conclusion
Hope you liked my small investigation on what $FXS whales are doing I will continue those series, as we have just found a lot of new projects, so we might take a look at their whales.
The most important takeaway for me was that almost all whales are holding strong and more and more projects are joying the FXS ecosystem (with FraxCahin coming out soon) which makes me even more bullish on it in terms of a couple of years.