Doesn’t this somewhat go against this proposal [FIP - 188] Increase CR to 100% - #3 by FraxGod.eth?
Even before launch, it was clear that relying on FXS to back the algorithmic portion of FRAX required locked liquidity to ensure smooth functioning of the protocol. Unfortunately, we have now seen many projects that didn’t understand this and failed. The downside of locked liquidity is that the protocol pays for it in the form of FXS rewards.