Just curious how Fraxswap is going to attract liquidity as

Question

Frax Finance

Michael Bera

Just curious how Fraxswap is going to attract liquidity as

most platforms open with a high inflation shitcoin?

#cryptocurrency #english #frax

0

05.03.2022

4 ответов

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Michael Bera Автор вопроса

Sam Kazemian ¤⛓️¤
A couple ways: 1.) Fraxswap will be the best pla...

Thanks. So mainly for projects like Olympus to swap tokens with other DAOs?

0

05.03.2022

Sam Kazemian ¤⛓️¤

Michael Bera
Thanks. So mainly for projects like Olympus to swa...

Yes, the way that I think it will go is Fraxswap will be one of the focal points where DAOs would want to have POL of their governance token against some stablecoin (like FRAX or FPI, technically they can make any other pair too, it's fully permissionles). Then the DAO can load a TWAMM at any rate/duration to acquire a stablecoin for its source of funding to always have the most efficient way to keep itself capitalized. There's no discounts on TWAMMs like there are with bonds. It is just a slow rebalancing of the LP so there will always be liquidity while the DAO accumulates treasury stablecoins.

0

05.03.2022

DS

Sam Kazemian ¤⛓️¤
Yes, the way that I think it will go is Fraxswap w...

This is super helpful in understanding the thought behind it!

0

05.03.2022

Sam Kazemian ¤⛓️¤ · Accepted Answer

A couple ways: 1.) Fraxswap will be the best place for protocol controlled liquidity to rebalance from one asset to another using TWAMMs, it's the most decentralized and efficient way to get one token for another onchain while having liquidity. Think of TWAMMs like a dutch auction but more efficient while still having liquidity. 2.) We'll be able to incentivize pairs with FXS gauges like usual, projects will be able to earn FXS rewards for LPing. 3.) Fraxswap isn't meant to compete against generalized AMMs like Curve, Uniswap, etc. It is meant to be specialized for DAOs to deploy their liquidity and rebalance one asset for another (like Frax's own collateral). Everyone, including FRAX, will continue to use other AMMs like Uniswap & Curve just like before. This is actually a very unique & specialized AMM, not a competitive one. Meant mostly for protocols to LP on.

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Just curious how Fraxswap is going to attract liquidity as

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