I was wondering why AMO doesn't push borrowing rate on

Question

I was wondering why AMO doesn't push borrowing rate on

sfrxeth way down, should be no risk to mint frax and supply to sfrxeth pair to make it more competitive among other lending eth/stable?

#cryptocurrency #english #frax

0

19.03.2024

6 ответов

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Burger Baron Автор вопроса

high borrowing rate is pushing me to other lending/borrowing markets, would love to stay fraximalist

0

8 месяцев назад

Burger Baron Автор вопроса

Bizy
Would kill the peg of we lowered the rate Eth bor...

why would minting frax and supplying to sfrxeth/frax pair on fraxlend kill peg? We already do in some amount right?

0

8 месяцев назад

Bizy

Burger Baron
why would minting frax and supplying to sfrxeth/fr...

People borrow frax from that pair, convert it into usdt or usdc or bridge it outside All of those external actions need to be defended against

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8 месяцев назад

Jefe ElJefe

Burger Baron
why would minting frax and supplying to sfrxeth/fr...

As long as rates are lower than market rates, people can arbitrage the difference by borrowing frax cheap and selling it to usdc to earn higher rates. If you had an endless loan facility at low rates it would drain the protocol of all stables as people pursued this strategy and then frax would depeg. As long as the amount of frax available to borrow is limited, the rates will naturally equilibriate to market rates. You could make it somewhat larger, but rates would still probably be high…

0

8 месяцев назад

Burger Baron Автор вопроса

Jefe ElJefe
As long as rates are lower than market rates, peop...

hmm true, thanks for answering my fraxies

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8 месяцев назад

Bizy · Accepted Answer

Bizy

Would kill the peg of we lowered the rate Eth borrowing rate is high everywhere right now

0

8 месяцев назад

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I was wondering why AMO doesn't push borrowing rate on

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