frxETH will always be backed by 1 ETH it may go below peg in the Curve pool because redemptions for staked ETH won't be live till Shanghai Etheruem update likely in March 2023. For borrowing against frxETH on Fraxlend you can get liqudated if the price reduces to your LTV ratio cause your collateral will be sfrxETH and your borrowing will be in USD
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