now). what actually happened or caused it. Any helpful info or threads I can read?
The CR is lower than a 100 since FRAX was originally a fractional algorithmic/collateralized stablecoin. After the FIP(snapshot vote), its only now the CR is getting raised to a 100%z
you mean this FIP: https://gov.frax.finance/t/fip-188-increase-cr-to-100/2147
The proposal authorized up to $3m per month in frxETH purchases to increase the CR. did we buy any frxETH until now?
It was spent on incentives to bring users onto the frax ecosystem and we own lots of volatiles that fell in price As we were farming we were not selling the resulting yield So our effective apy was much lower when you consider the price drop of the farmed tokens but we were paying higher incentives to keep people's liquidity of frax and fxs locked up That's my understanding
so in this case, when volatiles' prices are going up, CR auto closes to 100% and even over?
We would need CRV cvx to increase over 100% to bring cr to 100 Then if prices fall we would be under collateralized again
Thats the easiest play in the book. A mere 2x for CRV or Cvx ? Peanuts
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