# FRAX Liquidity on Moonbeam: Analysis & Recommendations

**URL:** <https://forum.moonwell.fi/t/frax-liquidity-on-moonbeam-analysis-recommendations/709>\
**Category:** Proposals\
**Tags:** base\
**Created:** [December 18, 2023, 6:13pm UTC](https://forum.moonwell.fi/t/frax-liquidity-on-moonbeam-analysis-recommendations/709 "2023-12-18T18:13:37Z")\
**Posts on this page:** 1\
**Showing post:** 12

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**Author:** ![Gauntlet](https://dub1.discourse-cdn.com/flex017/user_avatar/forum.moonwell.fi/gauntlet/32/780_2.png) [@Gauntlet](https://forum.moonwell.fi/u/Gauntlet)\
**Post date:** [December 26, 2023, 4:02pm UTC](https://forum.moonwell.fi/t/frax-liquidity-on-moonbeam-analysis-recommendations/709/12 "2023-12-26T16:02:51Z")

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Hi @Ketaru. Gauntlet is cautious about halting FRAX deposits, as this could negatively impact market liquidity and user confidence. We believe that resolving the bad debt situation is the most important factor in aiding FRAX liquidity at this time. We are working proactively to help Moonwell achieve this, offering a detailed [forum post](https://forum.moonwell.fi/t/roadmap-for-the-moonwell-community-on-nomad-incident-recovery/732) with options to use protocol reserves and outstanding Nomad collateral from bad debt, in order to repay the debt and enhance liquidity.

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