Is it possible for FXS to become 100% collateralized, or

The way I see this.... let's say total FRAX is $1,000,000... algo makes up 11%... as long as total MCap of FXS is >= $110,000... we're 100% collateralized. If FXS price starts to fall, I think the protocol starts to raise CR %.

0

22.05.2022

4 years locked. veMAXI (as a millionaire)

Lush
The way I see this.... let's say total FRAX is $1,...

it dont really work like that , if FXS market cap was $110k and FRAX started minting and selling FXS the market cap would go to $0 before FRAX protocol had made the $110k needed for full backing.

0

22.05.2022

Lush

4 years locked. veMAXI (as a millionaire)
it dont really work like that , if FXS market cap...

Isn’t that the point of FXS? To be the sister coin and provide backing in a way? Similar to the LUNA/UST mechanism?

0

22.05.2022

4 years locked. veMAXI (as a millionaire)

Lush
Isn’t that the point of FXS? To be the sister coin...

yes, but it needs to have a bigger market cap then the amount used for the algo backing

0

22.05.2022