seems solid project and their perpetuals are as well intriguing
in discord their team seems hands on
at the moment users are able to open DAI, USDC and FEi only cause not enough FRAX minted
i fully support staking, investing or considering opening even perpetual there
i would mint even more because 1m FRAX can be used in perpetual with leverage 5x, 10x or more.
i would propose that frax AMO invests additional 30% FRAX of that mint amount by themselves to perpetual and rest to agEUR staking
I’m not opposed to this proposal but the way that it is worded is a bit odd to say there is a “FRAX shortage.” Why is there a FRAX shortage exactly? Shouldn’t the Angle protocol target a reward rate of ANGLE tokens it wants in order to get FRAX deposits? I’m not familiar with the intricate details but I think it seems like it is not really FRAX protocol’s responsibility to alleviate a shortage of collateral for Angle, am I wrong?
The ANGLE protocol treasury assets have a limited amount of FRAX because people are not minting agEUR with their FRAX.
The treasury funds are used to hedged the leveraged trades from the investors so the limited amount of FRAX in the treasury has meant the protocol can only offer a small amount of leveraged trades on FRAX pairs.
ANGLE Protocol does not incentivize people to mint agEUR with any of the stable coin options but people are choosing to use USDC ($206m) and DAI ($28m) over FRAX ($1.9m).
The limited amount of FRAX in the ANGLE treasury is not our problem to solve, but it is a problem we can solve and it will also help the FRAX protocol at the same time.
From the FRAX point of view it will do the following.
1, increase the adoption / use cases for FRAX
2, generate an income for the FRAX protocol (from staking the agEUR)
3, FRAX will slowly start collecting $ANGLE which is used for voting power in the ANGLE protocol and can be used for gauge weight voting (when the update happens later this month)
i see this a way forward for FRAX when working with new (much smaller) protocols. we help them grow by providing liquidity and in return we earn governance tokens which we can then use to vote for FRAX pools on their platform. Over time this should attract more investors to the new protocols and give them a reason to use FRAX over the other stable coin options, and this should lead to an increase in usage for both FRAX and the new protocols.