for any assets, even usdc? One way to get out of FRAX is to swap it to asset that u want?
Isn’t that how usdt works? Only way to exchange it for another asset is to swap it, correct? Or, am I missing something
u can redeem for $ on official site
Not unless you're institutional client But either way, think of frax like dai in that it is pegged to $1 usd and will soon be backed by $1 of stable assets So even if every single frax wanted to exit as a test in one week to usdc, the protocol could survive
Sure, but, correct me if I am wrong, it will never be like usdc and Coinbase. Meaning, Coinbase ensures that if you want to exit usdc, you will always get $1usd if you redeem usdc via Coinbase. Frax would never make those promises, as in, 1frax will never be redeemable for $1usdc or $1usdt, correct? Redeeming would never happen and exchanging is the go forward plan, yes?
Correct You would have to exchange it for $1 usd worth of stone other crypto asset It doesn't have off ramp capability
While Frax the protocol may not, it is likley that others will fill this gap
How would someone monetize that? Buying Frax over peg, like 1.0004 and redeeming for $1.00? Is there enough margin? Or, is there a business model that I don’t know
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