Collateral Hedge
Helps stabilize the FRAX peg
This controller takes some amount of collateral and perfectly hedges against it with an inverse/short position to create a basis trade of net 0 volatility to minimize against significant drops in collateral price. This AMO would allow FRAX to be backed by more diverse and volatile collateral. For example, we are exploring using Synthetix inverse assets with the asset itself to form perfectly hedged units of collateral (ex: ETH-iETH).
Last modified 8mo ago
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