FRAX to pay a debt from Fraxlend in case of liquidation?
So if a position is going to be liquidated, before selling the collateral the staked FRAX could be used burning the held sFRAX, either paying the debt completely if enough is available, or reducing the liquidation price as much as possible
why not unstake sfrax and repay debt?
repay debt with sfrax just to avoid this step?
Because black swans and unexpected movements do occur, and you might not be in front of a computer to manage a position in time This could be something extra, paying a fee for the possibility of using sFRAX to avoid liquidation (like an insurance that could bring extra income to Frax)
Like using sfrax as a backstop? Can you give an example with a fraxlend pool
sfrxETH for example. Assuming 1 sfrxETH = 2000. Max LTV = 75%. You deposit 1 sfrxETH and borrow 1000 FRAX and stake to sFRAX. Here comes the hypothetical part: a place to deposit sFRAX, that checks the health of your position and repays part of your debt wen ltv approaches a certain value (e.g. price of eth price drops) sFRAX continues to earn yield + acts as a backstop for your lending position.
Of course the hypothetical sc needs to unstake sFRAX first before (partial) repay debt
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