Frax Finance Founder: Supports More Aggressive FXS Buyback Strategy

Frax Finance founder Sam Kazemian has expressed support for a more aggressive FXS buyback strategy proposed by Ouroboros Capital. The Frax Finance community voted in the middle of last year to use 20 million FRAX to buy back FXS. Capital put forward a proposal to actively optimize the current repurchase strategy. 

The proposal suggests that a time-weighted average price (TWAP) buyback worth $1 million would be initiated when FXS price falls below $5. If the share price falls further below $4, the proposal is to initiate an additional $1 million buyback for a period of one month. The key premise here is to purchase more FXS for subsequent destruction as the price falls further. According to Bitget, FXS is currently trading at $5.40.

Kazemian said he agrees with the general idea of accelerating the TWAP mechanism as the bitcoin price drops to $4, $3 and $2. "If the price continues to fall , we should be more aggressive in buying back more Tokens ," he added .