Eg suppose the pool APY is supported by yields generated

Question

Eg suppose the pool APY is supported by yields generated

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?

#cryptocurrency #english #frax

0

12.10.2023

4 ответов

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AnT Автор вопроса

Bizy
I think they're still working with rails and partn...

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

0

12.10.2023

Bizy

AnT
Put it simply, my question is: if sFRAX starts to ...

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

0

12.10.2023

AnT Автор вопроса

Bizy
Yes that's correct The protocol can choose to top...

‘Top up the difference’? What do you mean? I just wonder for now how the sFRAX APY is estimated

0

13.10.2023

Bizy · Accepted Answer

Bizy

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

0

12.10.2023

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Eg suppose the pool APY is supported by yields generated

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