Frax pumping, Luna pumping .....Do, Sam, curve, redacted....what next 🚀 | Summary and Q&A

TL;DR

UST and Frax are partnering to challenge DAI's dominance, utilizing the power of Curve and Convex tokens to direct liquidity and suffocate DAI with slippage and reduced incentives.

Key Insights

• ❓ Frax's partnership with UST seeks to disrupt DAI's dominance in the stablecoin market.
• 🎮 The combination of Curve and Convex tokens gives the UST-Frax partnership significant control over liquidity and rewards.
• 🎱 The Four Pool will offer better rewards, attracting more liquidity and traders from other stablecoin pools.

Transcript

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Questions & Answers

Q: Why is Frax's partnership with UST significant for challenging DAI?

Frax's previous accomplishments with its algo stablecoin and ownership of Convex tokens make it a powerful player. By teaming up with UST, they can leverage their influence and direct liquidity away from DAI.

Q: How does Curve fit into this partnership?

Curve's immense liquidity and various pools make it an attractive platform. By utilizing Curve, the UST-Frax partnership can offer better rewards, which will drive liquidity towards their Four Pool and create a positive feedback loop.

Q: How does the partnership plan to weaken DAI's position?

The strategy is to suffocate DAI by reducing incentives and liquidity in the market. By offering superior rewards through the Four Pool, the UST-Frax partnership aims to attract more traders and liquidity, gradually eroding DAI's dominance.

Q: What role does Convex play in this partnership?

Frax's significant ownership of Convex tokens gives them a considerable voting weight and influence over the ecosystem. This ownership allows Frax to shape the future direction of the Curve platform and attract more liquidity to their pools.

Summary & Key Takeaways

• UST and Frax have joined forces to create the Four Pool, a combination of USDT, USDC, Frax, and UST, excluding DAI.

• Frax's significant ownership of the Convex token allows them to have a substantial influence in shaping the ecosystem.

• Curve, with billions of dollars in liquidity, will play a crucial role in redirecting liquidity towards the Four Pool.

• The partnership's goal is to weaken and ultimately replace DAI by offering better rewards and attracting more liquidity.