{"id":80427,"date":"2023-06-19T16:38:04","date_gmt":"2023-06-19T13:38:04","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=80427"},"modified":"2025-09-11T16:56:09","modified_gmt":"2025-09-11T13:56:09","slug":"frax-founder-backs-a-more-aggressive-frax-share-buyback","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/frax-founder-backs-a-more-aggressive-frax-share-buyback\/","title":{"rendered":"Frax founder backs a more aggressive Frax Share buyback"},"content":{"rendered":"<p>Frax Finance founder Sam Kazemian expressed support for Ouroboros Capital&#8217;s <a href=\"https:\/\/gov.frax.finance\/t\/optimizing-fip-77s-twamm-parameters\/2397\">proposal<\/a>, which envisages a more aggressive Frax Share (FXS) buyback strategy.<\/p>\n<p>Approximately a year ago, the DeFi protocol&#8217;s community approved the creation of a $20 million <a href=\"https:\/\/forklog.com\/en\/news\/what-are-stablecoins\">stablecoin<\/a> FRAX fund for discretionary purchases of FXS under the TWAMM program. The aim of the initiative is to acquire the token at discounted prices and support its market value.<\/p>\n<p>Until recently, the project had used only $2 million of the allocated funds for these purposes. On June 15, Kazemian placed a new order to sell FRAX for $2 million in FXS over the next six months. This occurred as the token&#8217;s price fell to near two-year lows.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">THIS WEEK IN FRAX \u2014 June 16th, 2023<\/p>\n<p>? History repeats itself! ?<a href=\"https:\/\/twitter.com\/samkazemian?ref_src=twsrc%5Etfw\">@samkazemian<\/a> signals a $2m FRAX \u2192 FXS TWAMM Buyback in the main chat. The Buybacks have started once again!<\/p>\n<p>The last time this happened, it marked the bottom of FXS.<a href=\"https:\/\/t.co\/9xSfGjLipI\">https:\/\/t.co\/9xSfGjLipI<\/a> <a href=\"https:\/\/t.co\/UaoettGey0\">pic.twitter.com\/UaoettGey0<\/a><\/p>\n<p>\u2014 FlywheelDeFi.eth (@FlywheelDeFi) <a href=\"https:\/\/twitter.com\/FlywheelDeFi\/status\/1669784514602881024?ref_src=twsrc%5Etfw\">June 16, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The Ouroboros Capital team responded to the restart of the program with a proposal to optimise FXS purchases within TWAMM. The firm noted that accumulating tokens for the project addresses two main objectives:<\/p>\n<ul class=\"wp-block-list\">\n<li>Maintaining the asset&#8217;s price;<\/li>\n<li>Signalling to the market the minimum acceptable price for FXS.<\/li>\n<\/ul>\n<p>The firm noted that historically buybacks have been most effective in the $4-5 price range. Over the past 12 months, FXS has spent about 74 days at these levels, or around 20% of the time.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abWe cannot effectively lock in an advantageous price if the TWAMM is spread over a period, for example, six months\u00bb, \u2014 stated the company.<\/p>\n<\/blockquote>\n<p>The Ouroboros Capital proposed buying $1 million worth of FXS over a month when quotes fall to $5, with an additional $1 million allocated if the price drops to $4. Purchases would be paused after the minimum price is reached.<\/p>\n<p>In a comment, Kazemian expressed agreement with the overall idea that \u201cTWAMM should accelerate if the price ever falls to $4, $3 or $2.\u201d He also supported slowing the programme when quotes rise. At the same time, Kazemian argued for \u201csome freedom of action\u201d in the programme due to a number of unknown parameters, such as the duration of the bear market.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abIt would be unwise to spend all the allocated funds quickly and then sit on your hands while FXS continues to trade at depressed prices. Put simply, buybacks under the protocol are capped, and we do not have infinite &#8216;dry powder&#8217;. The duration of adverse factors is finite, but the timing of their impact is unknown\u00bb, said the founder of Frax Finance.<\/p>\n<\/blockquote>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/siybZFEBbOlf_ok5t1kO5tZ_sI71SRiDoQpX3JT_vHpBZKZoA0Xch2NoFENjYVTkNU3OWrs79bcYcKiNWVN_BpPsNJ5arTfprH7joTsWc1eGBdRYuH_yDyUgRsT_EORmFmK1psVOCFFWVL3Z570H2Iw\" alt=\"Frax founder backs a more aggressive Frax token buyback\"\/><figcaption class=\"wp-element-caption\">Data: Frax Finance.<\/figcaption><\/figure>\n<p>Against the backdrop of the TWAMM restart, the project&#8217;s token rose 7% over the week (<a href=\"https:\/\/www.coingecko.com\/en\/coins\/frax-share\">CoinGecko<\/a>). The token trades at around $5.4. Of the total supply of about 99.7 million FXS, 72.4 million tokens are in circulation.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh6.googleusercontent.com\/nd87DHPPy6Fjo0PfghbCVgRdYc8E3ywlGrdTfQUU2Xc4QFhfkvhiSUJG6mR_y9NZRjsJ9IWfAmJL3JVA3AvrodlOlWMuaIe2giRbZ4MQip4pokcmtJu2a9vqtYJDf2Jvnyux88_mVMLKmgV9lenvh7c\" alt=\"Frax founder backs a more aggressive Frax token buyback\"\/><figcaption class=\"wp-element-caption\">Data: CoinGecko.<\/figcaption><\/figure>\n<p>On June 16, Kazemian <a href=\"https:\/\/forklog.com\/en\/news\/frax-finance-to-launch-its-own-ethereum-layer-2-network\">said<\/a> that the project plans to launch its own Ethereum <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-layer%e2%80%912-solution-in-blockchain\">Layer-2 network<\/a> by the end of the year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Frax Finance founder Sam Kazemian expressed support for Ouroboros Capital&#8217;s proposal, which envisions a more aggressive Frax Share (FXS) buyback strategy.<\/p>\n","protected":false},"author":1,"featured_media":26216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1785,1093,596],"class_list":["post-80427","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-buyout","tag-defi","tag-tokens"],"aioseo_notices":[],"amp_enabled":true,"views":"14","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/80427","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=80427"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/80427\/revisions"}],"predecessor-version":[{"id":80428,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/80427\/revisions\/80428"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/26216"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=80427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=80427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=80427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}