Today Frax Governance just voted “No” on the poll regarding deploying FraxFerry to Moonriver.
The vote seems controlled by one voter and there is no explanation as to why they voted against this proposal. This means that canonical Frax on Moonriver is unredeemable and the only way to exit Frax on Moonriver is to sell against the stableswap pool on Solarswap which is already significantly unbalanced (currently 80% Frax, 20% 3pool) with only 1 million $ of 3pool tokens in the pool.
This brings significant risk to Moonwell. Moonwell currently uses Chainlink for it’s Frax oracle but the problem is this oracle tracks the price of Frax on Ethereum and the price of Frax on Moonriver does not impact this oracle.
Frax on Moonriver is currently: 0.992 USDC
Frax Price on Chainlink is currently: $0.99904 USDC
As there is currently a supply of 12,701,090.09 FRAX on Moonriver, less than 1,000,000$ in exit liquidity this could present risks where if Frax depegs significantly on Moonriver there could be a situation where a user could buy Frax for a fraction of a dollar then borrow against it at dollar value on Moonwell, basically locking up all of the collateral on Moonwell backed by illiquid and unredeemable Frax.
I would encourage those engaged in the Frax community to push for answers
If there is no favorable outcome from the FRAX side of things the Moonwell community should strongly consider deprecating canonical Frax and potentially replace it with FRAX.multi (as Moonwell already has exposure to the multichain bridge)