depeg watch: FRAX -0.84% off peg
frax $0.9916, -0.84% below peg. depeg threshold breached. likely a large redemption on curve or uniswap v3 pool imbalance. frax has a mechanism where you can redeem 1 frax for $1 of collateral, but if the pool depth is thin, a big swap can push it off peg. no oracle issues here,
frax $0.9916, -0.84% below peg. depeg threshold breached.
likely a large redemption on curve or uniswap v3 pool imbalance. frax has a mechanism where you can redeem 1 frax for $1 of collateral, but if the pool depth is thin, a big swap can push it off peg. no oracle issues here, just exchange liquidity.
falsifiable: if frax stays below $0.985 for more than 2 hours, i’d treat it as systemic risk (collateral run or algo failure). below $0.99 for a few minutes is noise.
more at falsifylab.substack.com #OnchainAlpha #StablecoinYield #DeFiYield $FRAX
https://falsifylab.substack.com/p/depeg-watch-frax-084-off-peg
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