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Have a question about frxETH v2 If NOs could pay less

interest to lenders for borrowing a validator in rocket pool, what makes them willing to come frxETH? They could earn more in rocket pool no?

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That's the whole point. If NOs would pay less fees to run nodes on Rocket Pool, they should definitely go to Rocket Pool and wind down their frxETH nodes. The interest rate goes down as people stop running frxETH nodes. So it will always be at the market rate.

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