So is the effective FXS price $4 rn?

does this mean liquidity balance needs to be fixed going forward? i will probably just keep the fxs, but if this persisted over time and/or was constant, particularly in a bear market, someone would just keep dumping whatever they get elsewhere to arb it

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04.06.2022

Sam Kazemian ¤⛓️¤

4 years locked. veMAXI (as a millionaire)
no, it will be the average price on all pools wit...

Exactly. This is correct.

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04.06.2022

Sam Kazemian ¤⛓️¤

DS
does this mean liquidity balance needs to be fixed...

No that's part of the design though. The point of the TWAMM is you can sell into it over time. The reason the FXS price is lower on Fraxswap is becasue someone is using a TWAMM to sell it their FXS slowly and smoothly over time. So for 24 hours the price of FXS on Fraxswap will be like $5 and be arb'd to the other markets. Instead, if that person sold all their FXS in 1 tx at once in Uniswap they would take down the price there to like $3 and then back up to $6 after the market absorbs the difference in price. Right now, the TWAMM allows the guy to sell over his desired period and have the market absorb the price from $5 back up to $6 over a 24 hour period (or whatever period he selected).

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04.06.2022

DS

Sam Kazemian ¤⛓️¤
No that's part of the design though. The point of ...

right, so the FXS side is much heavier than the FRAX side, hence the discount, until it gets more balanced and thus price moves towards other AMMs?

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04.06.2022

Sam Kazemian ¤⛓️¤

DS
right, so the FXS side is much heavier than the FR...

Yes exactly right. It should be much healthier in price action once their TWAMM and selling is done obviously.

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04.06.2022