will go down? Seems the peg has held fine and trust is going up
I don't think it should go down. If anyone learned anything from today, it's that FRAX excelled but that the CR should be tuned to go up even more than down. Why would you even ask for it to go down?
better question is what is FRAX going to once the CR is 200%
“The entire point of the collateral ratio is for it to go down and stay at the lowest ratio that the market is willing to tolerate to keep the peg this tight” I didn’t know if there was something planned to gently lower the CR as FXS increased in market cap
I don’t think that’s a good idea. Let’s learn lessons from the market and adjust everyone’s expectations
So if CR stays around 85% or so what drives the utilization of FXS? I know that the more Frax that’s minted the more fxs is needed but is there anything else?
AMO profits go to veFXS. The ratio at high 80s or low 90s is extremely safe and efficient. I don’t think we should be going out of our way to walk into what everyone now clearly knows is a mistake. Terra was trying to walk up to our CR from 0% and didn’t make it. We shouldn’t walk down to the CR that caused this for them. I think that’s common sense after today.
Where can I read more about AMO profits and their effect on FXS price? I incorrectly believed that the gradual lowering of CR would be what boost FXS price and I agree it’s important to keep it high after witnessing what a low CR can cause.
Not sure if you’ve already checked out our docs on AMOS: https://docs.frax.finance/amo/overview
Hi Andy , Can I DM you for staking withdraw help?
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