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Not fud just a noob , so I noticed his

(techlead) point basically hinges on the fact that substantial Crv liquidity has been removed from the curve pool which would cause the lack of liquidity in the event of a 1 billion FRAX sell. Has this been explained (where crv liquidity went)?

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Squnchy- Автор вопроса

Also could someone explain this tweet in simple terms please? https://twitter.com/longlongfld/status/1525922915698388992?s=21

Squnchy
Also could someone explain this tweet in simple te...

the simple terms is that he has no idea what he's talking about 😉

Squnchy
Also could someone explain this tweet in simple te...

current collateral ratio is 89% per https://app.frax.finance/ --- and the protocol owns a lot of the frax out there, so it actually has more than 100% coverage of the non protocol owned frax out there. literally not possible, if someone else bought every single frax that isn't owned by protocol, to depeg it right now

Squnchy- Автор вопроса
Derek
current collateral ratio is 89% per https://app.fr...

When you say protocol owns a lot - you mean the AMOs? If so , What do the AMOs do with this FRAX ?

Squnchy
When you say protocol owns a lot - you mean the AM...

yes, the AMO's contain lots of frax and lots of usdc/usdt/dai etc (mostly in 3pool, but some other pairs)

Squnchy
When you say protocol owns a lot - you mean the AM...

they LP it in the pools. put it out as needed, pull it back as need to manage the peg

Squnchy- Автор вопроса
Derek
they LP it in the pools. put it out as needed, pul...

They put extra frax in the LP or crv pool or AMM

Squnchy
They put extra frax in the LP or crv pool or AMM

yes or they can remove it/burn it/etc as needed to keep the peg managed between .99 and 1.01. if it's less than 1 they remove, if it's greater than 1 they add

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