Another way to think about it is like this: let's

Question

Another way to think about it is like this: let's

say we sell $100m of FXB2029 and another $100m of FXB2055 and we buy $200m of ETH with it. Do you think that ETH price will be 20% higher in 5 years and 2x higher in 30 years? If so, then it is a very profitable mechanism for the Frax Protocol.

#cryptocurrency #english #frax

0

13.11.2024

20 ответов

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Bueno Pues

Would we take leverage on the $200m of ETH to buy more or, just mint more FXBs?

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1 месяц назад

Sam Kazemian ¤⛓️¤ Автор вопроса

Bueno Pues
Would we take leverage on the $200m of ETH to buy ...

Leverage is dangerous, I wouldn't ever recommend leverage if we could sell FXBs. I hate leverage personally.

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1 месяц назад

Leo Leo

Sam Kazemian ¤⛓️¤
Leverage is dangerous, I wouldn't ever recommend l...

Agreed. Central bank don't do leverages. Issuing bonds much better

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1 месяц назад

Bueno Pues

Sam Kazemian ¤⛓️¤
Leverage is dangerous, I wouldn't ever recommend l...

Value prop of MSTR: you can buy it in your retirement account, or regular account, ie, can’t lose your keys. And, doesn’t he leverage already owned BTC for more BTC? So, as a user who is long ETH, what is the value prop of someone buying FXBs that buy ETH vs the user buying ETH themself?

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1 месяц назад

bonna

how do we define sell? like allowing people to subscribe the bond using ETH? and where do that FXS Bond we sell coming from?

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1 месяц назад

Sam Kazemian ¤⛓️¤ Автор вопроса

Bueno Pues
Value prop of MSTR: you can buy it in your retirem...

What's the difference between MSTR and a BTC ETF?

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1 месяц назад

Bueno Pues

Sam Kazemian ¤⛓️¤
What's the difference between MSTR and a BTC ETF?

Debt, no?

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1 месяц назад

Sam Kazemian ¤⛓️¤ Автор вопроса

bonna
how do we define sell? like allowing people to sub...

Auctioning FXBs for Frax USD like we're doing now but then buying ETH as a strategic reserve for the very long dated ones 5-30 year dated bonds. Please keep in mind, this is just community talk 🙂 not in any way a real governance proposal or fully decided mechanism.

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1 месяц назад

Bueno Pues

Bueno Pues
Debt, no?

As in, I thought MSTR leveraged BTC that it owned to buy more BTC.

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1 месяц назад

Sam Kazemian ¤⛓️¤ Автор вопроса

Bueno Pues
As in, I thought MSTR leveraged BTC that it owned ...

Yes, I think that's the main difference other than the memes.

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1 месяц назад

Bueno Pues

Sam Kazemian ¤⛓️¤
Yes, I think that's the main difference other than...

So, if that is the case, and FXBs would not follow this direction, as a user, why buy FXB vs ETH. What is the additional value to the user?

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1 месяц назад

Leo Leo

Sam Kazemian ¤⛓️¤
Auctioning FXBs for Frax USD like we're doing now ...

Can we issue some special bonds for reserve assets and exclude from current CR calculation?

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1 месяц назад

Sam Kazemian ¤⛓️¤ Автор вопроса

Bueno Pues
So, if that is the case, and FXBs would not follow...

FXBs are fixed yield instruments, they're not meant to be bought or held by people that want to invest in ETH that could go down 50% over the next 2 years or up 300% the 3rd year.

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1 месяц назад

Bueno Pues

Sam Kazemian ¤⛓️¤
FXBs are fixed yield instruments, they're not mean...

So, if ETH nukes, the Frax protocol needs to guarantee the FXB returns and if ETH does well, the Frax protocol wins. Correct?

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1 месяц назад

Sam Kazemian ¤⛓️¤ Автор вопроса

Bueno Pues
So, if ETH nukes, the Frax protocol needs to guara...

Correct but on a very very long time frame, we're discussing like 5 to 30 year time horizon.

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1 месяц назад

Bueno Pues

Sam Kazemian ¤⛓️¤
Correct but on a very very long time frame, we're ...

Yeah, it would have to be. How do you feel about about the PMF of bonds (FXBs)? Still early? More user education needed? Or, timing is good?

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1 месяц назад

Sam Kazemian ¤⛓️¤ Автор вопроса

Bueno Pues
Yeah, it would have to be. How do you feel about a...

So far have had most users say great things about farming it and using it on Fraxtal so the FXB economy is growing quite well. Danger (the guy that runs TodayInDeFi) said it's one of his favorite primitives that he's seen. It's been growing well 🙂

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1 месяц назад

Bueno Pues

Sam Kazemian ¤⛓️¤
So far have had most users say great things about ...

From a standpoint of incentives: since they come from FXS emissions, sooner or later, instead of emissions, incentives will have to come from protocol revenue or, do you thing the FXB yield is sufficient to maintain/grow TVL for FXBs?

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1 месяц назад

Michael Henry

And if not, it significantly damages the stable coin. regardless it will harm adoption because it increases the risk profile of FRAX

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1 месяц назад

Intern C · Accepted Answer

Intern C

Yeah I 100% agree it will be lit to do it imo.

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1 месяц назад

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