FraxLend risk management model

Why doesn’t Aave have a similar risk management model to FraxLend, where all the parameters are triggered automatically and do not depend on slow governance procedures? If AAVE has an automated model, a bad CRV scenario will probably never be allowed. I’m trying to digest why the AAVE model is better than FRAX, and I can’t find a good reason—the less human intervention for market reactions, the better, imho.


I’m talking about this stuff: why FraxLend’s debt was prioritized over AAVE’s debt? Because it’s mechanism, can we do it better?

1 Like