Hey everyone, i posted a rebuttal on why we shouldn’t

Question

Hey everyone, i posted a rebuttal on why we shouldn’t

buyback $20m fxs, it touches on frax economics so it may be of interest if someone wants to have a clearer image of that https://gov.frax.finance/t/fip-77-20m-fxs-buyback-program-using-twamm/1523/19?u=seba

#cryptocurrency #english #frax

0

09.06.2022

11 ответов

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Marko

what you don't mention is that this buyback will allow for less fxs emissions in bribes (higher fxs value) and when you start receiving cvx/crv for fewer fxs, it creates a flywheel where the profits/emissions you receive start working as a fxs value defense system, I think you can compare FXS to OHM somehow that it uses FXS to bond cvx/crv & incentivize frax usage, and the higher the value of the token is, the less supply you have to emit to acquire other assets, if fxs price is constantly this low, it just creates negative flywheel where the amounts of emissions are constantly going up, this is why I feel that frax has to protect FXS value with this move like ohm did with inverse bonding

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09.06.2022

mathletamine

>Follow 0xHamz proposal and deposit hundreds of millions of Frax collateral (How to sell our USDT is another topic) into uncollateralized lenders for sustainable high yields. Where is this proposal?

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09.06.2022

0xHamZ jarome

Completely agree w this take

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09.06.2022

Michael

0xHamZ jarome
Completely agree w this take

kinda true. if your coupon coin's price is at the core of your stablecoin design/policy decisions, you're gonna get rekt. it should be no consideration at all. if it is, the design's flawed.

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09.06.2022

AC T

Marko
what you don't mention is that this buyback will a...

Interesting point

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09.06.2022

Deo

We should definetely not pass this proposal

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10.06.2022

Freyr