There has been a bit of conversation about this in the telegram, but I thought I’d bring it over here because all of the questions are relevant and haven’t yet been addressed. Thanks to @sparkes25 for the good questions. (Source: Telegram: Contact @fraxfinance)
Q: if the vote passes, and the $2m FRAX is agreed. what will you do with the $2m ? where will it be providing liquidity too ?
A: It will be for the ROWAN:FRAX pool on Sifchain, establishing our deepest stablecoin liquidity on the DEX. Eventually, the FRAX community could also make a proposal to take that chunk of liquidity elsewhere to other DEXes in Cosmos after a satisfactory liquidity depth has been reached.
Also, I was under the impression that the FRAX community would still own that liquidity and would thus generate rewards.
We also have 100% APR for all pools on Sifchain at the moment, although we will be tapering this off and lowering inflation in the near future as we launch more features. We would also welcome cross-community events to encourage ROWAN holders to make the ROWAN:FRAX pool a bonus pool, increasing the rewards for liquidity providers and hopefully making the pool deeper.
Q: so for staking in that pool the FRAX protocol will earn ROWAN token?
A: Precisely – and y’all are free to do as you like with it 
that could include purchasing Cosmos tokens like ATOM to your foreign investments index.
Q: whats the expected trading fees gonna be like for margin trading ? including on-chain transaction fees?
A: Cosmos transaction fees are super low – almost non-existent.
As for fees, you can actually borrow against liquidity that you provide to the liquidity pools. “Interest rates for each pool are set dynamically based on its ratio of available assets to borrowed assets.” – Sifchain Weekly Update: 11 Oct -24 Dec | by Sif | Sifchain Finance | Dec, 2021 | Medium
Q: "wont [gains] be capped by the liquidity ? eg, if someone put up $20m collateral and wanted to do a $500m trade, that $500m has to come from somewhere?
A:
TLDR
Gains are uncapped, borrowing amounts are capped and determined by the amount of liquidity in the pool.
Details:
By uncapped gains we mean that users who open a successful position will receive all of their gains from closing the trade. This is different to some other protocols where if you close a successful trade up 1000% you may only receive 900% of your gains.
There are 2 important things to consider regarding margin trading:
borrowing is limited by the amount of liquidity in the pool and there is a buffer. So imagine there is a pool with $100M liquidity, you can only borrow 50% of that for a trade. But when you do that, you will drive interests rate way, way up. This has two effects: more liquidity will be drawn into the pool because higher interest rate= higher rewards and unprofitable trades will most likely be closed against the increase in interest rates.
b) swap: we have oracle weighted pricing so you can execute a swap against an oracle price (an oracle weighted version of the price that takes into account pool depth). However, if you do a really huge trade you’ll still induce slippage.
Security of the Bridge: All recent audits can be found here.