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Munehisa-

When will it be burned?

#cryptocurrency #english #frax
0

2 ответов

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Sam-Kazemian ¤⛓️¤

Some of it won’t be burned because it is protocol owned liquidity like in the Curve pools. Some of it can be burned but is used when the AMOs expand like lending more into Fraxlend pairs. For example, if the protocol owns $100m POL in Curve, then about 50m of it is FRAX that’s owned by the protocol. That FRAX won’t be burned unless it is to balance the peg or to remove liquidity. But it also is never counted as collateral as my post above explains since an equal amount of FRAX is added to the liability side of the balance sheet to cancel it out.

0
02.11.2023

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