from $10M RWA held by the protocol
Case study:
the pool grows to 30M $sFRAX but the protocol hasn’t yet used all of the 30M to get access to US treasury amount the growing amount to hold RWA during such a time window?
I think they're still working with rails and partners to see how fast they'll be able to go on and off Idea was to do weekly at the worst case or daily in the best case We will here from the team in a few days how they've managed to withdraw the deposits and how fast they've been able to earn yield on it
Put it simply, my question is: if sFRAX starts to accrue yields but the underlying RWA does not increase instantly to match the increasing amount of sFRAX, does that mean at some point of time APR is ‘diluted’ as the newly deposited sFRAX is supposed not able to earn RWA yields right after it’s deposited
Yes that's correct The protocol can choose to top up the difference as they have this week, and in the future as there will be fees and excess yield for the protocol, there should always be a buffer amount in finres that's earning a yield above what's owed to sFrax / Fxb stakers
‘Top up the difference’? What do you mean? I just wonder for now how the sFRAX APY is estimated
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