price. FXB_20261231 is supposed to mature with 4.47% yield so 100 FRAX invested will receive 104.47 FRAX at maturity right? just wanna make sure because at the moment the price of FXB_20261231 in curve is at $0.79 which is heavily discounted
Correct
To be more clear, it is discounted on the market in places you are looking but the 4.47% yield is annualized. So you would earn more than 4.47 FRAX on maturity if you invested 100 FRAX today.
so basically if i can get 1 FXB for 0.79 FRAX that is at least 0.21 FRAX profit (FRAX wise) before any yield in maturity. correct?
If you buy 1 FXB for .79 FRAX today, that means when it matures in 12-31-2026, it will turn into 1 FRAX. An overall total yield of 21% over the duration.
thanks.. now im just wondering why in the world would someone sell their FXB for 0.79 FRAX 🤔
Not sure but if I had to guess I would assume them not wanting to wait for a 20%+ yield until 2026 and wanting to probably deploy their capital to farm points and other degen stuff. But if someone has a time horizon that matches that fixed yield, it's pretty interesting indeed. Not investment advice obviously.
i see. im gonna start buying them up then lol. fraxtal chain use frxETH as gas?
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