[FIP - 133] Add XAI-FRAXBP Gauge


Deploy an FXS gauge for Convex wrapped position of XAI-FRAXBP Curve Pool LP.

Curve Pool Address: Vyper_contract | Address 0x326290a1b0004eee78fa6ed4f1d8f4b2523ab669 | Etherscan

Background & Motivation

Silo [www.silo.finance] is a risk-isolated lending protocol that creates permissionless money markets. In our lending protocol, each market (or ‘silo’) consists of a base asset such as $FRAX and two bridge assets, ETH and our stablecoin XAI. Borrowers in each silo (market) are only exposed to the risk of 3 assets at any time rather than all the assets in the protocol. We have long had good standing with the Frax team with Sam serving as an indispensable advisor, and our decision to pair our governance token $SILO with FRAX on Curve.

XAI is Silo’s over-collateralized stablecoin with a soft peg to the US Dollar. The SiloDAO is the only entity that controls XAI. Via executive proposals, the SiloDAO can choose to mint unlimited XAI and deposit it into any number of silos. Similarly, the DAO can burn XAI that is extended to any silos via governance proposals. When the DAO mints XAI into a silo, it effectively determines XAI’s backing. Similarly, when the DAO burns XAI in a silo, it changes XAI’s backing. After the recent passing of SIP-19, the current backing of XAI is 66.66% ETH and 33.33% USDC.

Benefits of XAI-FRAXBP Gauge:

  1. Silo Finance will seed the pool with 3M USD XAI-FRAXBP.
  2. Silo Finance will provide Incentives through our 260,000 vlCVX.

Future Areas of Collaboration:

Following this proposal, Silo Finance has scoped and is ready to propose multiple collaboration efforts with the Frax community. In the future, you can expect to see the following potential partnerships coming into Frax governance for discussion:

  • sFRAX Gauge: A gauge for Frax staked in the Frax Silo akin to aFRAX.
  • frxETH/sfrxETH Silo: Silo Finance will work to enable a silo for frxETH further expanding its use case. We would also be more than happy to extend credit lines into this market.

We invite the Frax community to also voice their support/critique regarding these efforts.

Voting Instructions

For: Add gauge
Against: Do nothing

1 Like

This proposal is up for voting here: Snapshot