payments? Or realistically, is the best-case scenario that FRAX commands a canonical payments layer within the crypto ecosystem, that's outside the traditional payments landscape as we know of today
Both. I think FRAX can and will becoome a micro payments and privacy centric stablecoin on L2s like Aztec and zk sync. I think FRAX is potentially the most versatile stablecoin design so far released. Maybe UST is another similar design.
Is it correct that FXS is burned to mint FPI?
Isn't it true that UST is not decentralized (built on Terra, which has higher throughput but no innovation on the side of scalability), whereas FRAX is built on a more credibly neutral layer (Ethereum), thus making it a more ideal solution?
This would be my opinion as well.
i thought FRAX/FXS relationship is like that. Like when FRAX is $1.01USD, isnt FXS bought to sell more FRAX by the protocol to maintain peg?
and thus FPI should be the same mechanic right? except the peg would be floating with the CPI rate
in v1 to mint 1 frax u needed 0.85c of usdc + 15c of fxs, the fxs was burnt, and this was done by users/arbitragers. frax v2 can be seen as the protocol directly minting at 100% collateralization, this causes the % of collateral backing each frax to increase, so to stabilize the % backing each frax and lower it to the target CR, the protocol slowly mints more frax (when its value is >$1), uses this frax to buy fxs and distribute this to vefxs stakers
ok aside from the nuance of USDC being part of the collateralization of new FRAX (at least in v1), the rest of the stuff you said is sorta similar to what i said but expanded in detail right?
This was surprising to me as well
no pretty sure the mechanic is same as FRAX stablecoin rn, just with a moving peg each month
I had that hypothesis as well in this channel and I haven't heard any official confirm or deny on this
That would be cool. Just didn’t know that until I read this
i couldnt see it any other way, because if there was a more superior algo mechanic to maintain that was going to be used for FPI, it would also be used for FRAX too lol
love frax on my argent zksync wallet
Yeah makes sense, this is insanely bullish for FXS
Обсуждают сегодня