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Simplify DeFi-

What does it mean "fractional reserve", especially with a 100%

CR? Does that mean Frax has the ability to get extra yield with the collateral via AMOs?

#cryptocurrency #english #frax
0

2 ответов

10 просмотров
tan-Any1 DM as admin will be reported to tg as scammer

Your $USD is fractional reserve, any fiat is fractional reserve. Current Banking system around the world is fractional reserve

0
20.05.2023
Simplify DeFi- Автор вопроса
tan Any1 DM as admin will be reported to tg as scammer
Your $USD is fractional reserve, any fiat is fract...

Would someone be able to provide a simplified explanation of what is meant by "Fractional Reserve" in this case? Feel like that is an important definition and don't want to make assumptions. With a bank, I feel like that would mean they only hold 5% of cash reserves that they claim to have. Meanwhile, they loaned out the remaining 95%, which is probably illiquid. Is FRAX doing the same thing? Fractional Reserves (keeping some USDC), but the concept is they can retrieve those funds instantly?

0
20.05.2023

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