Can you provide some examples of how this would work, for both depositor and borrower? I have a number of questions, but an not sure I fully understand how this would work in reality. Is everything denominated in FRAX? The reality is that most end-borrowers would want USDC most likely, no?
FRAX would co-exist along w/ stFRAX —- the reason to own FRAX is to get access to stFRAX which recycles protocol earnings into stFRAX for a yield
forgive my naivete, but how does this work exactly? I'm a borrower that wants to borrow $10m frax and am willing to pay 10%. that frax is coming from someone who put their stFRAX into a vault, which means the underlying collateral (say USDC) is locked up for a certain period, and thus it's safe for the protocol to lend it out? who underwrites this creditworthiness?
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