Opinion: Michwill establishes the crvUSD/fFRAX liquidity pool to extend the Fraxlend interest rate increase cycle

Odaily Planet Daily News Twitter user DeFi_Cheetah published an analysis of the reasons why Michwill established crvUSD/fFRAX: Because Fraxlend adopts a time-weighted variable interest rate, it will adjust the interest rate according to time, up to 10,000%. The higher the utilization rate, the shorter the promotion cycle. Michwill established the crvUSD/fFRAX liquidity pool, aiming to reduce the utilization rate and prolong the interest rate increase cycle. For fFRAX holders, they can obtain FRAX loan exit liquidity, and those who have confidence in Michwill can also provide LP to obtain high rewards. For crvUSD holders, the worst case is that they will end up holding CRV's book liabilities, namely fFRAX, and these people are also staunch supporters of the Curve ecosystem.