frax at $0.9937, -0.63% below peg. threshold breached.

possible causes: large redemption event hitting the curve pool, or a sudden imbalance in the frax-3pool on curve. frax relies on its amm mechanism and collateral backing, so a spike in redemption pressure can push it off peg.

falsifiable line: if frax drops below $0.985 and stays there for 6+ hours, i treat that as systemic risk (collateral mismatch or bank run). anything above that is noise from normal arb flow.

more at falsifylab.substack.com #OnchainAlpha #StablecoinYield #DeFiYield $FRAX

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Originally published on FalsifyLab Substack.