FRAX relies only algo to shore up the non collateralized

part right?

itt's really interesting to hammer this all down

let's start with DAI, like 150%+ collateral

1. The collateral doens't buy back DAI directly, does it? It belongs to people

DAI is bought back with interest revenue, is it, or what? I forget all that keepers stuff

2. DAI collateral is such that if eg ETH falls below line, it can liquidate, which causes borrowers of DAI to care

UST lacked that entire mechanism of collateral altogether

But, FRAX has it at ~1/2 of 150%, at 85%

It seems that protection from item 2 above can still play out, just at lower collateral amounts

Now, let's say FRX falls a lot

So, now that it did fall a lot, did people get liquidated, while holding their FRAX still, if they didn't add more to their collateral?

And, what does that mean?

Ok, let's see:

Cascading down FRX price, liquidated collateral, removes the need to return the borrowed FRAX

Removes the burning of FRAX, leaving higher supply, which eventually gets sold,

Lowering the FRAX price peg

At which point people can borrow below peg, using the FXS collateral

Unless they think FXS is in a death spiral down

But they can also collateralize with other assests.. maybe mostly other assets actually iirc

So what's FRX value mostly come from? Earnings on interest?

And that earning is used for buy-back?

But in FRAX there's also earnings from the other interest bearing assets they hold (compound etc)

How are those other assets doing, and how's the buy-back fund?

Protocol profits go to veFXS holders

how does FRAX price get pushed up when it's under?

Generally through the AMOs and arbs

with what funds do the AMOs operate?

you can see the different AMO's here https://app.frax.finance/amos

docs explain it pretty good https://docs.frax.finance/amo/overview

godefi DeFi (won’t DM first)
Where can we see the POL total? Is it in bottom ri...

Here you go :) https://dune.xyz/seba/Frax

godefi DeFi (won’t DM first)
Where can we see the POL total? Is it in bottom ri...

POL fell by 1/2 from $2.4B to $1.2B. FRAX supply fell too? How much? By what mechanisms?