In order to ensure that L-FRAX-DOLLAR will always be greater than 100% CR in the future, it is recommended to sell 90% of the volatile assets and replace them with USDC or frxETH as strategic reserves, and prepare sufficient funds for the strategic reserves of frxBTC in the future.
Considering the volatility of current liabilities, a large part of asset projects are being sold by their token project owners, and their tokens do not have reserve value. We should replace them with more strategically valuable frxETH, frxBTC, USDC, sfrxUSD, FRAX,(prev.FXS), CVX,CRV
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This time, we need to execute this 100%. We can’t round-trip again and wait for many months under 100% CR. With all the momentum and new regulation, L-Frax needs to be 100% backed, and then transition all to frxUSD as the only USD-backed stablecoin under the Frax ecosystem.
I hope this proposal can be discussed and recognized by the core team. Currently, most of the 100% CR is due to the rise of ETH. We should switch the direction of strategic reserves to reserve frxETH, frxUSD, USDC, FRAX (prev.FXS) or future frxBTC. We should sell volatile assets other than the above assets to ensure that L-FRAX-DOLLAR can also operate for a long time. The future cooperation method is to earn income by providing liquidity cooperation with frxUSD, frxETH, frxBTC as providers under the condition of complete security.
Yes, the time has come again and we should act now
Currently CR has reached 100.1% We should consider selling velo, ram, op, arb volatile tokens
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We have done it for some of these assets and we are doing our best to make sure CR get secured using the current market condition.