FRAX via sFRAX is more implicit than explicit? ie if sFRAX is going at 5% then naturally cost of Frax will gravitate towards that and naturally POL will earn a yield closer to 5%
Correct. That's the same dynamic as when the Fed itself raises the IORB and lending/mortgage markets adjust to the new cost of borrowing.
will 100% of AMO revenues go to sFRAX or will there still be a portion to goes to veFXS (after 100% CR)?
Obviously fees and excess revenue goes to veFXS as usual. This sFRAX feature is meant to provide Frax Protocol the same lever as the Fed has: the IORB.
thanks sam. i guess i was confused by the initial wording ie "The protocol will allocate part of the revenues it earns from balance sheet deployment in AMOs and RWA strategies to supplying sFRAX yield to set the “Frax Staking Rate.”
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