Frax Finance

11 Dec 2024 21:11

When shit will inevitably hit the fan, we have to be ready. We can't afford a hole in our balance sheet. Can't wait to hear more details on the strategic reserve.

Frax Finance

11 Dec 2024 21:07

There aren’t enough details on the mechanics of the system to infer the results yet

Frax Finance

11 Dec 2024 21:07

If we expect bond holders to take the hit, yield should be high and proportional to the strategic reserve appreciation

Frax Finance

11 Dec 2024 21:04

Yea I think thats right

Frax Finance

11 Dec 2024 21:04

Who is MSTR in this? FRAX holders?

Frax Finance

11 Dec 2024 21:03

im superhyped fxb's. it is gonna be a win on so many levels

Frax Finance

11 Dec 2024 21:02

Lets say that the strategic reserve bonds have to be redeemed at a loss. What then ? Is there a plan to mitigate losses ? Maybe there is a huge momentary dip and a tranche of bonds matures. Where is the failsafe ?

Frax Finance

11 Dec 2024 20:51

See here /channel/fraxfinance/378338

Frax Finance

11 Dec 2024 20:45

Wait, fxs usd aka frax becomes redeemable?

That would be a massive vision change.

Or am i misunderstanding tbis piece?
frxUSD is the evolution of our dollar stablecoin. Fully collateralized, fiat mint-redeemable, & backed by Frax's famous AMOs. Custodians announced soon.

Frax Finance

11 Dec 2024 20:39

i wouldn't want to unwind any loans i've taken out against sfrxeth or fxs if i dont have to

Frax Finance

11 Dec 2024 20:36

Maybe it's just me, but I also caught this in the announcement and it made me happy rewards won't be pinned to one FXB.

"In the coming weeks, tens of millions in annual protocol revenue will begin rewarding our loyal veFXS holders, distributed as Frax Bonds (FXBs) of various maturities."

Frax Finance

11 Dec 2024 20:28

Also if i stake FXS to veFXS now, i'll be eligible for FXB?

Frax Finance

11 Dec 2024 20:26

That's my understanding too. FXTL is how tail emissions will be distributed.

Frax Finance

11 Dec 2024 20:18

Don’t worry. I know what it says but still don’t know what it means so it doesn’t matter yet

Frax Finance

11 Dec 2024 20:15

FRAX finance. FRAXtal. FRAX naming service.

Frax Finance

11 Dec 2024 21:09

Well you are right, still I listened to Sam on flywheel and I do not like the "well if Eth price doesn't double on average every year we are screwed anyway" argument.

Frax Finance

11 Dec 2024 21:07

ETH does +30% over the span of a year
Bonds get a +3% premium on yield

Frax Finance

11 Dec 2024 21:06

So the protocol gets wrecked if a tranche matures just by a dip

Frax Finance

11 Dec 2024 21:04

Bonds are always redeemable 1 to 1 for frxUSD at the expiration date right? So FRAX protocol takes the loss and (potentially) frxUSD holders as a whole

Frax Finance

11 Dec 2024 21:03

Well but why would bond holders take the L if they are earning basically IORB

Frax Finance

11 Dec 2024 21:03

Bond holders take the loss same as MSTR holders right?

Frax Finance

11 Dec 2024 20:59

/channel/fraxfinancenews

Frax Finance

11 Dec 2024 20:46

@samkazemian wheren’t there announcments starting from today?

Frax Finance

11 Dec 2024 20:40

Pin an explainer here please

Frax Finance

11 Dec 2024 20:39

how would this hardfork affect lending positions?

Frax Finance

11 Dec 2024 20:30

I think frax will keep being the engine running DeFi. Prob not the best to onboard the next billion users. Naming convention should stay the same, users will have to know learn what a truly decentralized stablecoin looks like themselves and why/how that’s useful. They don’t have a reason to now, so until then Frax is still the underdog. Frax partnering with other protocols is still the way to go and to keep system alive. The community will keep it alive

Frax Finance

11 Dec 2024 20:28

Do FXS holders need to do anything to switch to FRAX when the hardfork happens, or will this be auto changed?

Frax Finance

11 Dec 2024 20:21

so fxtl points are basically new emitted frax if i understood it correctly?

Frax Finance

11 Dec 2024 20:16

Frax isn’t just a USD stablecoin protocol anymore. FRAX is the brand and FRAX is how you invest in it

Frax Finance

11 Dec 2024 20:13

for a little bit, then no. In the end it will become only more clear. FRAX is the BRAND. FRAX is the NATION. FRAXIMALISTS (not fraxi's intern) are the CITIZENS.