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As I understand it, USDC deposited to back FRAX is

deployed to other protocols like Curve to generate returns, and if the collateralization rate drops, USDC is returned to FRAX treasury?

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Yes if the peg needs to be maintained the deployed USDC is returned to normal

Another-Cabrito Автор вопроса
Jae |
Yes if the peg needs to be maintained the deployed...

Is there a minimum guarantee threshold in USDC?

Another Cabrito
Is there a minimum guarantee threshold in USDC?

Can you elaborate what you mean by minimum guarantee ser?

Another-Cabrito Автор вопроса

for example, the FRAX must be collateralized by at least 80% USDC. is there a threshold like this?

Another Cabrito
for example, the FRAX must be collateralized by at...

We have a collateral ratio which states the percentage of USDC. https://app.frax.finance/ Currently 94.25%

Another-Cabrito Автор вопроса
Another-Cabrito Автор вопроса
Another Cabrito
is there a minimum ratio?

This is the goal to maintain, however after a governance vote, the CR will soon be 100%

Another-Cabrito Автор вопроса
Jae |
This is the goal to maintain, however after a gove...

ok thank you, for the moment the objective is to maintain at around 94%

Another-Cabrito Автор вопроса
Jae |
Oui oui

Thanks you for help

Another-Cabrito Автор вопроса
Jae |
Oui oui

sorry for an additional question, can you explain this passage to me or just give me an exemple.

Another Cabrito
screenshot sorry for an additional question, can you explain ...

It means AMOs function while programmed to not affect the peg

Another Cabrito
screenshot sorry for an additional question, can you explain ...

Still remember I asked the same question here when AMO doc. came out

Another Cabrito
ok thank you, for the moment the objective is to m...

To be fair, the goal is actually to increase this from 94% to 100% by diverting protocol revenues towards CR instead of buying back and distributing FXS to veFXS holders.

Another-Cabrito Автор вопроса

Once CR reaches 100%, we turn the veFXS money printer back on 😉 If the last months protocol revenues continue, we should reach 100% in 2-3 months. Then that revenue will re-start the FXS flywheel and should increase interest in locking veFXS again.

Another-Cabrito Автор вопроса
Avi ✨
Once CR reaches 100%, we turn the veFXS money prin...

All right. I read the documentation little by little I haven't yet arrived at the details of FXS and veFXS. from what you tell me, the fees generated by the protocol are used to buy FXS and distribute to veFXS holders

Another Cabrito
All right. I read the documentation little by litt...

Right, but this feature is off right now since the DAO voted to direct all revenues towards CR in order to remove the algorithmic backing of FRAX.

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