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Lordwadsworth-

So it appears we may be moving away from the

fractional reserve that Frax was based on? What’s the purpose of holding FXS besides governance

#cryptocurrency #english #frax
0

3 ответов

24 просмотра
Dennis-

Fractional reserve actually means that you do not have all the cash liquid for all the outstanding loans, not that you are undercollateralized.

0
12.05.2022
MaladiusRex-
Dennis
Fractional reserve actually means that you do not ...

neither $LUNA nor $FEI nor $FRAX are “undercollateralized”, the market cap of the volatile asset was always larger than the ‘uncollateralized’ part of the stablecoin market cap. It depends on your definition

0
12.05.2022
Dennis-
MaladiusRex
neither $LUNA nor $FEI nor $FRAX are “undercollate...

Own governance tokens are usually not counted as collateral, because the price of those go down when you need collateral the most, see $LUNA.

0
12.05.2022

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