Hi all, a few months ago I asked a question

Question

Hi all, a few months ago I asked a question

about frax mechanics that was ignored a couple of times, but I thought I'd ask again. For example, the $100m frax that was sent to Tokemak -> what is the process for the $100m to be minted? How could the protocol do that without a corresponding increase in collateral to the value of CR*100m?

#cryptocurrency #english #frax

0

16.03.2022

4 ответов

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Andy - IQ & Frax Finance 🧠 (Slow Replies @ T2049)

Hello M, like DS mentioned, AMO controllers can perform open market operations algorithmically but they cannot arbitrarily mint FRAX out of thin air and break the peg. Read more about our AMO: https://docs.frax.finance/amo/overview

0

16.03.2022

S Автор вопроса

DS
Read the AMO docs. Can mint frax to use for these ...

Yes I'm just confused about how a $100m mint would not affect peg

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16.03.2022

Moleh

Andy - IQ & Frax Finance 🧠 (Slow Replies @ T2049)
Hello M, like DS mentioned, AMO controllers can p...

Hey! Am I allowed to post a snapshot vote?

0

16.03.2022