prints Inflation 1000% . Frax would not have enough collateral for all that Frax to fund fpi. How would fpi pay that interest?
if the USD did 100% inflation in a year, then we would all be at war and suffering from mass food/ fuel shortages
Ok, but that doesn’t answer my question. If paying fpi comes under pressure, where does additional Frax come from? Do you print Fpis to cover losses? Would fpi shut down if it becomes untenable? Is there something automated that prints Frax to fund fpi?
FPIS would be minted to make up the difference, if that fails then FRAX protocol would have to fund the extra needed.
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