[FIP - 128] Increase Fraxlend AMO allocation for a pair ( CRV/FRAX - Variable Rate )

Governance Proposals AMOs
1

Authors

Frax Core Team

Summary

Increase max authorized allocation of Fraxlend AMO for the following Fraxlend pair.

Fraxlend Pair Name Fraxlend Pair Address Current Max Authorized Allocation Proposing Max Authorized Allocation
FraxlendV1 - Curve DAO Token/Frax - Variable Time-Weighted Interest Rate - 6 0x3835…2510 5,000,000 FRAX 15,000,000 FRAX

Background and Motivation

Fraxlend is a lending platform that allows anyone to create a market between a pair of ERC-20 tokens. Any token part of a Chainlink data feed can be lent to borrowers or used as collateral. Each pair is an isolated, permission-less market that allows anyone to create and participate in lending and borrowing activities.

Automated Market Operations (AMOs) make FRAX one of the most potent stablecoin protocols, creating maximum flexibility and opportunity without altering the base stability mechanism that made FRAX a leader in the stablecoin space.

Fraxlend CRV/FRAX-VariableRate pair is one of the protocol’s fastest-growing isolated markets, which can be monitored here.

Proposal

  • For: Increase max authorized allocation of Fraxlend AMO for the mentioned pair.
  • Against: Do nothing.
2

Thanks for posting this Amir. The proposal(s) look good. Unless anyone has any strong objections, you can probably combine all the Fraxlend AMO increases into a single FIP ( next time you opt for an increase) that includes all the specifics of each change (if you want to do this). This might simplify things on your end and probably scales better as the scope of Frax AMOs grow.

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This proposal is up for voting here: Snapshot

4

Hey Amir -

Thanks for leading the charge in scaling the Fraxlend AMO’s with these proposals. I was curious why the CRV/FRAX allocation is increased to 15M Frax while WBTC, wETH, and CVX are only increased to 10M? I would assume WETH is safe enough to increase to 15M as well.

Is there a specific benefit to exclusively increasing to CRV to 15M?

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CRV/FRAX pair is almost fully utilized. So we know there is a demand for it, but WETH and WBTC pairs utilization ratio is less than 10%, so we only increase the allocation for them to meet large borrowers potential needs.

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