Comments 12
Who's holding the liquidation risk if FXRP depegs mid-position?
Flare's whole design is built around attestation and collateral layers specifically to handle depeg scenarios, if you've been watching this project for years like I have, that question was addressed pretty early in the architecture.
Synthetic collateral unlocking options exposure is a meaningful step for float utilization. Curious how the vesting and redemption mechanics hold up under volatility, that's where these wrapper designs usually get tested.
flare been cooking in the background forever and now fxrp as options collateral is actually a real unlock, feels like finally hitting a new level after grinding the tutorial for two years
Ugh, of course this happened right when I finally started understanding what Flare even does.
anyone else just gonna ape in and figure out the mechanics later 😭
Introducing options on a wrapped collateral layer stacks operational risk on top of protocol risk, size accordingly.
Yeah sure "size accordingly", that's what I told myself right before I got wiped out using what I thought was a "small" position on a protocol I barely understood.
Getting wiped wasn't the sizing, it was not having a hard exit plan before you entered, that's a discipline problem, not a protocol problem.
Fair, but also the protocol melting down mid-position doesn't care how disciplined you are.