Summary:
Activate cross chain Lending and Liquidity/AMM AMOs on Polygon, Arbitrum, Moonriver+Moonbeam, Fantom, Binance Smart Chain (BSC), Solana, Harmony, Optimism, Boba Network, and Avalanche which will allow collateral/USDC/protocol assets to flow through these chains.
Approve minting of up to $20m FRAX+FXS per chain for AMOs on the following networks: Polygon, Arbitrum, Moonriver+Moonbeam, Fantom, BSC, Solana, Harmony, Optimism, Boba Network, and Avalanche.
Background & Motivation:
FRAX has aggressively set up the infrastructure and bridging required to expand to Polygon, Moonriver+Moonbeam, Fantom, BSC, Solana, Optimism, Harmony, Boba Network, and Avalanche. With final testing approaching completion, Comptrollers are ready to activate certain lending and liquidity market operation activities to kickstart deep borrow markets and trading depth on each of the above networks.
This proposal is to activate 1 Lending AMO and 1 Liquidity AMO per chain. Comptrollers will pick the most promising and reputable lending market and AMM per chain to conduct initial algorithmic market operations on. For example, on AVAX, we are planning to mint FRAX into Benqi’s lending market and mint FRAX-FXS and/or FRAX-USDC liquidity into Pangolin DEX.
We plan to conduct the analog of these market operations on each chain with a limit of up to $20m per chain (with another governance vote needed to increase this ceiling). For minted FRAX on such chains, the CR will adjust accordingly on ETH L1 and keep global count across all chains. All FRAX+FXS is entirely fungible and there is only 1 CR globally across all chains so that there is no excessive minting occurring that could affect FRAX peg performance on ETH or any other chain since arbitrage is kept open across all FRAX+FXS across every network.
EDIT: Please be advised after posting this FIP, we are also suggesting adding of Boba Network to the chain list. So the final chains will include Boba Network (formerly OMG) as well as the above chains already mentioned.