Greetings @samkazemian Big fan of FRAX, I've been trying to

Question

Carter W. | Shade Core Researcher | {S = S}

Greetings @samkazemian Big fan of FRAX, I've been trying to

wrap my head around user stories. Largely because I've missed the inception of FRAX to a degree (discovering it in 2022). I'm trying to understand why folks decided to mint FRAX by depositing collateral vs just buying it off the open market. deposit -> mint with no slippage -> earn rewards with FRAX somewhere? Is the lack of slippage the primary reason a user would deposit collateral versus buying FRAX off the open market and using it to earn yield somewhere? I'm just kind of mindblown about how FRAX has bootstrapped itself this far, and trying to understand what that first year looked like in terms of common user stories. Obviously arb players are a primary reason the elastic supply shifts (in relation to changes in demand), I'm just trying to understand how much regular users played in the expansion of FRAX?

#cryptocurrency #english #frax

0

30.05.2022

7 ответов

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Carter W. | Shade Core Researcher | {S = S} Автор вопроса

Capt
Nice to see you here Carter! I like what you are d...

Thanks 🙏 Terra happenings have been humbling for us, so I've pretty much been binging all things FRAX & FEI. Put a little too much faith in Terra's model so, having to relearn & rechallenge prior assumptions

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30.05.2022

Capt

Carter W. | Shade Core Researcher | {S = S}
Thanks 🙏 Terra happenings have been humbling for u...

Ye what happened to terra is sad, they had a lot of good things going on. A minting cap would’ve saved a lot, and timelock on anchor. But at least you are lucky that it happened this early on, shade/silk could’ve been way more affected if terra kept being successful for another year or so. I am still waiting for an iOS wallet for secret network btw, what’s up with that, when keplr support 😂

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30.05.2022

Carter W. | Shade Core Researcher | {S = S} Автор вопроса

Capt
Ye what happened to terra is sad, they had a lot o...

I feel you on the iOS wallet. We may or may not be working on something to help solve this :p Mobile is so important, I think 2023 is the year of mobile focus for lots of mainstream DeFi applications

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30.05.2022

Capt

I’ve been here since launch. 3x boost when locking for 3 years have been a good thing for frax. And the possibility to unlock with governance vote if needed.

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30.05.2022

Carter W. | Shade Core Researcher | {S = S} Автор вопроса

Capt
I’ve been here since launch. 3x boost when locking...

So essentially if you lock up frax shares, you got boosted LP rewards (similar to curve mechanics)? This helped build initial demand for the frax shares which are part of the backing for FRAX in a contractionary event (essentially supply absorption method, but with way way more collateral backing the mechanic than Terra) am I understanding that properly?

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30.05.2022

Capt

Carter W. | Shade Core Researcher | {S = S}
So essentially if you lock up frax shares, you got...

I think so yea. The locked amount can’t be sold so even though frax became less backed with time there has always been a part of the supply that’s locked and can’t be sold. I don’t have the exact metrics on this but I imagine they played a part in keeping everything stable. There was also a cap on how much frax that could be minted. Frax original design with sovereign shares alone was prone to potential exploit from whales similar to terra imo. A bit less lucrative as collateral rate was higher. You can see how iron finance played out. That was frax design but without time locks and without other cool things that was implemented in v2.

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30.05.2022

Capt · Accepted Answer

Capt

Nice to see you here Carter! I like what you are doing over at secret network and shade :)

0

30.05.2022

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