In the end, whether it is a morally good idea

Question

In the end, whether it is a morally good idea

or bad idea, should borrowing on veFXS be prioritized over other development efforts?

I think there are many other opportunities with higher ROI vs borrowing against veFXS.

#cryptocurrency #english #frax

0

17.02.2024

10 ответов

38 просмотров

Milan - 米藍 - ميلان

Its not a moral standpoint, its the danger it causes to the protocol what concerns me.

0

10 месяцев назад

Blocks Grahm

There’s about $360M of value in locked FXS. Pick whatever collateral radio you’re comfortable with and extrapolate some numbers. Let’s say people take loans of about 25%, that’s $80M more FRAX in circulation, basically increasing the market cap by about 12%. Let’s assume the average interest rate on that is 4%, then you’re looking at $3.2M of profit just on interest alone, not accounting for liquidation fees. Then start thinking about the additional incentives of even more people locking up FXS, now knowing that they’re not stuck in an illiquid position and can get out if they really need to. That would definitely entice some, lowering the circulating supply and providing positive price impact.

0

10 месяцев назад

Blocks Grahm

Milan - 米藍 - ميلان
Its not a moral standpoint, its the danger it caus...

Once again, do you have any concerns of Fraxlend blowing up? Because this is literally the same system I’m describing.

0

10 месяцев назад

Milan - 米藍 - ميلان

Blocks Grahm
Once again, do you have any concerns of Fraxlend b...

I have not looked into fraxlend yet because Im not a lender. Lending markets are common so that is whatever but the locked part of veFXS seems to be even riskier.

0

10 месяцев назад

Blocks Grahm

Milan - 米藍 - ميلان
I have not looked into fraxlend yet because Im not...

Just to reiterate, this is all based on the premise of veFXS having a rage quit function that would allow for the unlocking of FXS at a penalty, and then liquidating that position.

0

10 месяцев назад

Bueno Pues Автор вопроса

Blocks Grahm
There’s about $360M of value in locked FXS. Pick w...

25% seems way high. To me, this seems more like a tool that a 3rd party can build. Stake with them, get xvefxs which you can borrow against. Many many other opportunities for the core team to prioritize allowing partners to come in with creative solutions for items like this

0

10 месяцев назад

Bueno Pues Автор вопроса

Bueno Pues
25% seems way high. To me, this seems more like a ...

But hey, it won’t be the first time someone has disagreed with me on properties g a roadmap

0

10 месяцев назад

Jefe ElJefe

Blocks Grahm
There’s about $360M of value in locked FXS. Pick w...

Doesn’t work like this

0

10 месяцев назад