am all for this proposal, Lobis is a nice initiative. Everyone can read more here:
To put it in a nutshell for those who don’t have time to read:
- Lobis is an Olympus fork that will accumulate CRV, FXS and other governance tokens through bonding, with the goal to create a governance protector for protocols with locking mechanisms
- the idea is that they will allocate the accumulated FXS to whitelisted protocols or directly lock themselves, but ensuring that the final user always keeps a vote, and that no protocol becomes too big and put Frax at risk
- Launch date is not set yet, more info to come
- proposal on Olympus still needs to pass, vote ends tonight 12am UTC
I think for Frax it would be a great opportunity as it will create a strong incentive for other protocols to work as fast as possible to be able to build on top of Frax and grab a share of Lobis’ reserves.
Furthermore, as Lobis will not sell its FXS reserves, it will be like a “blackhole” for FXS, and help FXS becoming a deflationary asset, which will have positive impact on Frax LP APYs.
What could happen if Lobis were to get whitelisted?
First, there are no protocols built on top of Frax to date. Therefore, a whitelist would enable Lobis to start locking FXS for a short duration, while other protocols build a strong FXS locking offer (Convex has already mentioned they were working on it).
Then, if only a limited amount of protocols build on top of Frax, Lobis could potentially keep locking to balance the power of those protocols and protect Frax’s governance and decentralisation.
here is Lobis’ most recent post to expand on the vision: First Envelope - Lobis: The Soul — Mirror
Looking forward to voting on this great proposal!