@Samkazemian will the dsr like product frax is developing have

Question

Frax Finance

AC T

@Samkazemian will the dsr like product frax is developing have

a 5% floor? Based on fxbs base rate? I know you said you would propose 10% on the top end?

#cryptocurrency #english #frax

0

03.09.2023

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AC T Автор вопроса

Sam Kazemian ¤⛓️¤
Yes it will have around 5% base rate that can idea...

Can you explain how you get to 10%? I imagine it has something to do with overlap fees

0

03.09.2023

Sam Kazemian ¤⛓️¤

AC T
Can you explain how you get to 10%? I imagine it h...

It's just the "cap rate" meaning that it can support certain amount of deposits up to 10% and then slowly linearly decreases to a 5% asymptote as more people deposit. For example: the first 50M FRAX deposited get 10% APR in sFRAX, then after 51M deposited the APR goes down slowly 9%, 8%.. until it is at 5% at around 500M. It's sort of similar to a farm where the more TVL slowly lowers the APR but this has a cap rate and farms don't.

0

03.09.2023

AC T Автор вопроса

Sam Kazemian ¤⛓️¤
It's just the "cap rate" meaning that it can suppo...

500m nice. Do we have a name for this yet?

0

03.09.2023

Sam Kazemian ¤⛓️¤ · Accepted Answer

Sam Kazemian ¤⛓️¤

Yes it will have around 5% base rate that can ideally scale with FRAX supply for billions of dollars hopefully. The 10% is for the top end similar to how DSR had 8% but we think 10% is ideal in these macro markets and will suggest that in the gov proposal to launch sFRAX.

0

03.09.2023

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@Samkazemian will the dsr like product frax is developing have

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