Can anyone explain what happened with ~600M frax supply decrease

I agree AMOs' CR should be 100% but for current FRAX = USDC + FXS with market decided CR works well in the past, volatility days. It is great assets to frax, are we going to throw away for ever?

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12.05.2022

DS

tan Any1 DM as admin will be reported to tg as scammer
I agree AMOs' CR should be 100% but for current FR...

It’s an upgrade imo, as we still get the benefit of additional yield generation through credit, without actually being undercollateralized. And times have changed after this event; being able to say frax is 100% collateralized can dispel a lot of fud and potential attack (literal and political) vectors

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12.05.2022

tan Any1 DM as admin will be reported to tg as scammer

DS
It’s an upgrade imo, as we still get the benefit o...

but frax does very well in past couple of days, please explain why need this upgrade

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12.05.2022

DS

tan Any1 DM as admin will be reported to tg as scammer
but frax does very well in past couple of days, pl...

It’s a risk reduction measure that avoids much of the fud and actual Attack risks that an undercollateralized stable has; it also depends on using the equity token to back liability, which can be improved. Using a debt model on top of a fully collateralized stable is safer and cleaner in my view. @samkazemian likely has far more developed thoughts on this; I just took his thought and drafted them after realizing the value in this approach

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12.05.2022

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DS
It’s a risk reduction measure that avoids much of ...

I do agree frax should reduce risks rn, but if the same in bull market will kill frax' growth.

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12.05.2022

DS

tan Any1 DM as admin will be reported to tg as scammer
I do agree frax should reduce risks rn, but if the...

We can adjust later and work on the mechanics. Could just increase the credit ratio in that case

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12.05.2022