Compensate for the WFRAX Illamalend Market's Bad Debt

Governance Proposals
1

Summary:

Compensate for the bad debt from the WFRAX Illamalend Market on Fraxtal.

Author:

Astral Protocol: Increasing liquidity provider returns through layered yield strategies, liquidity pools and yield bearing vault tokens.

Abstract:

Permanently lend crvUSD equivalent to the bad debt in the market OR direct CRV/WFRAX emissions to the pool until lenders have recouped their losses.

Motivation:

The current state of the WFRAX lending market is a clear signal that participating in the FRAX ecosystem is risky and can result in total loss of funds. This decreases investor confidence in Frax, the Fraxtal chain and the WFRAX token.

The WFRAX Illamalend Market has less then 100K in bad debt, a small price to pay to show investors that Frax takes care of its investors and users and that participating in the Frax ecosystem is safe.

Specification:

Either deposit 95K crvUSD into the WFRAX Illamalend Market on Fraxtal until the bad debt is fully compensated for OR direct approximately 15K CRV/5K WFRAX in emissions per week to the Illamalend market for 1 year.

For:

Increase trust and confidence in the Frax.

Against:

Compensating would cost too much.

Voting Options:

  1. Don’t do anything.
  2. Donate crvUSD to the WFRAX Market.
  3. Direct CRV to the WFRAX Market
  4. Distribute WFRAX to the WFRAX market
  5. Execute a combination of options 1-3.
  6. Propose to FRAX to match them 50/50 in compensating for the WFRAX market’s bad debt or compensating affected lenders.
1 Like
2

For.
opcion 5

llamalend is esecential for Fraxtal.

3
  1. Don’t do anything.