I have a question, might seem rather noobie, but Frax's

Question

I have a question, might seem rather noobie, but Frax's

balance sheet has like $620M in assets (~$400M of which are Frax) and Frax Supply is ~740M. Does this mean Frax is partially backed by Frax?

#cryptocurrency #english #frax

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11.10.2023

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Sam Kazemian ¤⛓️¤

Sam Kazemian ¤⛓️¤
No, the FRAX on the asset side that the protocol o...

This has been explained a lot multiple times. Feel free to reference the quote above when it last came up @munehisa_asxn

0

02.11.2023

Sam Kazemian ¤⛓️¤ · Accepted Answer

Sam Kazemian ¤⛓️¤

No, the FRAX on the asset side that the protocol owns is cancelled out by the same amount of FRAX on the liability side. FRAX can't obviously be backed by itself. The balance sheet makes clear any FRAX in existence (even if it's owned by the protocol) is a liability. Thus, FRAX on the asset side never adds to the collateral of the system since it is also subtracted on the liabilty side.

0

11.10.2023

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I have a question, might seem rather noobie, but Frax's

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