This FIP proposes to acquire CRV using FRAX DAO treasury funds in order to support Frax’s role in DeFi and increase liquidity across all FRAX/FrxETH/FPI pairs.
Background and Motivation
Over the last week, the CRV/FRAX Fraxlend pair as well as other protocols’ lending pairs have come under stress due to CRV prices and liquidity. In order to bolster the health of our lending market, as well as foster increased liquidity across all Frax assets, the DAO should use this opportunity to an acquire CRV.
This discussion thread should serve as a the opening of this discussion and formalizing of acquisition amounts and funding sources.
I believe the analysis here should be centered around the potential dilution of our CRV/CVX voting power from the new OTC buyers of CRV. Some are buying purely for a financial gain while others are locking it into wrappers such as cvxCRV (which does not dilute our voting power but actually strengthens it). The analysis around dilution will provide basis to whether or not we should consider buying to counter the dilution.
This proposal suggests the OTC acquisition of CRV tokens using 1 million FRAX from the Frax DAO treasury at the same price as the prior OTC transactions conducted by Curve founder Mich. The acquisition will enhance Frax’s presence within the curve ecosystem and position the protocol for future growth.
- For: OTC acquisition of CRV tokens, using 1 million FRAX from the Frax DAO treasury
- Against: Do nothing
This proposal is up for voting here: Snapshot