@Samkazemian quick question, is there a reason why FXB is

Question

@Samkazemian quick question, is there a reason why FXB is

not sold in USDC instead of FRAX? 🤔 That would allow us to siphon liquidity/vampire attack Circle and increase the circulating supply of FRAX since it would essentially just become a conversion mechanism. Purchasing in FRAX does not have that additional benefit.

#cryptocurrency #english #frax

0

07.02.2024

6 ответов

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Blocks Grahm Автор вопроса

Mark11
Please read the docs ser

The docs state that “FXBs allow the formation of a yield curve to price the time value of lending FRAX back to the protocol itself.” I’m positing whether there’s higher economic incentive of siphoning liquidity from USDC to expand the FRAX supply.

0

9 месяцев назад

Mark11

Blocks Grahm
The docs state that “FXBs allow the formation of a...

Please think about what you are saying - work through the flows in your mind - knowing that the liability for final settlement is FRAX

0

9 месяцев назад

Blocks Grahm Автор вопроса

Mark11
Please think about what you are saying - work thro...

Right, as I mentioned in my original comment, this would essentially be unwrapping USDC into fiat, and then wrapping it again as FRAX. It juts moves the fiat from the Circle treasury and into the FRAX RWA custodial entity for us to benefit from interest yield.

0

9 месяцев назад

Jefe ElJefe

Blocks Grahm
Right, as I mentioned in my original comment, this...

It’s all the same doesn’t matter what you buy it with

0

9 месяцев назад

Blocks Grahm Автор вопроса

Jefe ElJefe
It’s all the same doesn’t matter what you buy it w...

This is the point I’m trying to make, buying with USDC increases the fiat holdings of the custodial entity, which would increase the available supply of FRAX.

0

9 месяцев назад

Mark11 · Accepted Answer

Mark11

Please read the docs ser

0

9 месяцев назад

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@Samkazemian quick question, is there a reason why FXB is

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