FRAX Reputation on Ethereum (Q1.2023)

This report uncovers the reputation and interrelationship of FRAX Finance (website https://frax.finance/) within the Ethereum ecosystem. Firstly, we have an overview of Octan Global Reputation Score (GRS), totaling 1,000,000 points distributed for all public addresses (accounts) on the entire Ethereum ecosystem. Octan Reputation Score (RS) measures the importance of Web3 accounts (including contract addresses and EOA wallets), quantitatively computed from onchain transactions via adaptive PageRank algorithms (visit Octan Reputation Ranking System).

Transaction data collected from Ethereum:

  • Block range: from 16,000,000 (18/11/2022) to 17,323,369 (23/05/2023)
  • No of blocks: 1,323,369
  • No of transactions: 399,819,863
  • No of addresses:  32,183,371
    • No of contract addresses:  1,015,182
    • No of EOAs:  31,168,189
  • Average GRS (i.e. arithmetic mean equals the sum of a GRS of all addresses divided by the count of addresses)
    • Contract group (highest): ~0.38
    • EOA group:  ~0.02

View reputation reports in PDF:

Primer on Frax Finance

Frax Finance is a decentralized finance protocol that issues a fractional-algorithmic, USD-pegged stablecoin called FRAX, a hybrid stablecoin collateralized by both FRAX Shares (FXS) and an algorithm adjusting supply of FRAX. 

Frax Finance is a potential project to make algorithmic stablecoin more widely adopted. The protocol is well-designed and has distinguished features: fractional collateralization, algorithmic stabilization, community governance. Besides stablecoin, Frax Finance expands its business to price index and ETH-liquid staking, providing validator nodes on Ethereum. Frax Finance is backed by a strong community of developers and users.

Frax Finance Reputation

We investigate six contracts of Frax Finance, discover its reputation scores and onchain statistics. In the following table, In-Degree, Out-Degree, Degree stand for in-link, out-link, total in-link & out-link connections, respectively. We count the number of unique active wallets (UAWs) interacting with the contracts of Frax protocol, and compute the average reputation score of  their UAWs. Table 1 shows that Frax contracts have high reputation scores, much higher than the average of 1M+ contracts computed on Ethereum, indicating an important role of Frax Finance in the ecosystem. Moreover, excluding reputation scores of hot wallets of centralized exchanges, average RS per Frax’s UAW is multiple-time greater than average per EOA (i.e. individual wallets), even much greater than average GRS per UAW of Top10 contracts by reputation scores in Table 2. This implies that Frax Finance has the top experienced and quality users on the Ethereum ecosystem. 

Table 1. Reputation scores and onchain statistics of Frax contracts
Table 2. Top10 contracts by Reputation scores on Ethereum

Now, we shall explore the reputation of Top token holders of Frax protocol. All of them have high reputation scores, much greater than the average RS on Ethereum.

Table 3. Reputation scores and onchain statistics of Top10 FRAX token holders.
Table 4. Reputation scores and onchain statistics of Top10 Frax Ether – frxETH token holders.
Table 5. Reputation scores and onchain statistics of Top10 Frax Price Index – FPI token holders.

Visualization

First figure demonstrates the interactions of Frax’s contracts (FPI, FRAX token, frxETH) with other dapps on Ethereum. The second figure visualizes the reputation (node size) and impact of Frax protocol within the ecosystem.

About Octan

Establish Trust and Credibility in Web3

​​Octan Network is an award-winning data analytics provider in the Web3 space, achieving recognitions from industry-prominent organizations: BNB Grant DAO on Dorahack, Web3 Matching by BNB Chain, Octopus Accelerator Program, DFINITY Developer Grant Program.

Octan Network, instead of focusing on cash-flow & financial analytics, we use our unique Ranking Reputation System (RSS), inspired by Google’s PageRank, to provide reputation and ranking scores for accounts across chains and applications. By qualifying, classifying, evaluating, and extracting social insights from Web3 entities, our system provides the best quality analytics and the most multi-dimensional insights on Web3.  Applications of Octan Reputation Ranking & onchain analytics:

  • User segmentation: By leveraging new data sources and advanced analytics tools, RRS provides valuable insights about entities in the Web3 ecosystem. This enables projects and marketing agencies to utilize reputation scores and analysis reports to effectively classify, qualify, and segment users and audiences in the Web3 space, aiding in user acquisition strategies. 
  • Investment research: Investors can utilize the RRS to gain a comprehensive assessment of a project by analyzing the activity levels of the project’s contracts and the quality of user wallets interacting with those contracts; helps investors easily select promising projects based on reputation and performance, enabling them to conduct more in-depth financial analysis 
  • Onchain research and analysis: Researchers and analysts can leverage the RRS to identify emerging trends and opportunities in the Web3 space through the transformations in the reputation of Web3 entities. By studying these reputation changes, they can gain valuable insights into market dynamics, user behavior, and ecosystem developments. 

Octan’s onchain analytical reports provide a comprehensive view of the Web3 ecosystems and its entities. These reports, produced by Octan data analysis experts, offer reputation scores of notable entities and segmentation, providing valuable social insights and social interaction within the Web3 space. Furthermore, Octan offers visualizations showcasing relationships and connections between Web3 entities. This allows clients to easily comprehend and interpret the reputation data generated by Octan.

 

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