FIP 34 - TEMPLE <> FXS Swap

Governance Proposals Token Swap / Seed funding
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Summary:

Swap $1m worth of FXS from community msig at a 7 day TWAP price for $1m worth of TEMPLE at 7 day TWAP price. TEMPLE will be held on Frax Protocol’s balance sheet.

Background & Motivation:

Temple DAO has accumulated over $100m FRAX in their treasury making them the largest DAO holder of FRAX. We’re already working with Temple on further collaborations and would like to align incentives so that both protocols have direct upside in one another as we grow. This proposal seeks to get a first allotment of each other’s governance tokens.

The TEMPLE acquired for this swap would be either deployed to staking within Temple DAO or liquidity in the most useful place for Frax such as either a Tokemak reactor or AMO controlled FRAX-TEMPLE liquidity. Temple DAO will likely stake the FXS as veFXS or deploy it for yield.

For: Swap FXS for TEMPLE

Against: Do nothing

1 Like
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For because diversification is key and also its a good investment imo for frax

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While the notional amount is insignificant ($1m is frankly nothing to both protocols), this is a show of good faith and opens doors to further collaborative efforts that can help diversify and strengthen FRAX’s PCV.

Support!

5

I strongly support expanding our partnership w the Templars who were amongst the earliest believers in FRAX the stable coin. Through this modest governance token swap we provide them w the incentives for further collaboration so that each of our respective protocols reaches its objectives. Partners FTW!