@Samkazemian I checked the doc yesterday but still have one

Question

@Samkazemian I checked the doc yesterday but still have one

question I could not find an answer about FPI.
When I mint, my frax will be collateral, when I redeem I will get frax back, both transactions will calculate the amount of FRAX based on the CPI price at the time of tx execution. As the CPI price is rising for most of the time, so when I redeem later the extreme case could be insufficient FRAX for the redemption. So what is the design to solve this problem?

#cryptocurrency #english #frax

0

15.04.2022

2 ответов

18 просмотров

john hoo Автор вопроса

Sam Kazemian ¤⛓️¤
The FRAX that is backing FPI as collateral must gr...

Thanks Sam , it's super helpful to know. I noticed yesterday that the FPI minter contract has functions for AMO to borrow/repay frax collateral I assume there will be FPI AMO to form a growth strategy. The growth of the treasury surpass CPI is not too difficult imho. Looking forward to know more about FPI AMOs. Just like always, FRAX is a great team with a great community. 👍

0

15.04.2022

Sam Kazemian ¤⛓️¤ · Accepted Answer

Sam Kazemian ¤⛓️¤

The FRAX that is backing FPI as collateral must grow at minimum to be in line with inflation rate or the FPI CR drops below 100% as you correctly point out. We are already in the process of designing FPI AMOs and also building a treasury strategy that will make sure the collateral that backs FPI grows in line with the CPI.

0

15.04.2022

209 похожих чатов

@Samkazemian I checked the doc yesterday but still have one

2 ответов

Похожие вопросы