[FIP - 360] Authorize Fraxlend AMO for a new pair (sDOLA/FRAX - Variable Rate)


Authorize Fraxlend AMO to deposit minted FRAX into the following Fraxlend pair with mentioned max authorized allocation.

Fraxlend Pair Name Fraxlend Pair Address Max Authorized Allocation
sDOLA/FRAX - Variable Rate V2 TBD 10,000,000 FRAX

Background and Motivation

Fraxlend is a lending platform that allows anyone to create a market between a pair of ERC-20 tokens. Any token with an approved data feed can be lent to borrowers or used as collateral. Each pair is an isolated, permission-less market that allows anyone to create and participate in lending and borrowing activities. This protocol is creating new financial opportunities for the FRAX community.

Automated Market Operations (AMOs) make FRAX one of the most potent stablecoin protocols, creating maximum flexibility and opportunity without altering the base stability mechanism that made FRAX a leader in the stablecoin space. So far, Frax has deployed multiple AMOs, including lending AMOs on the Fraxlend, Aave, and Rari protocols.

Adding more pairs into Fraxlend AMO is the next step in this vision, allowing the protocol to mint FRAX backed by over-collateralized debt.

Inverse Finance is the decentralized autonomous organization that develops and manages the FiRM fixed rate lending protocol, DOLA, its debt-backed, decentralized stablecoin, and sDOLA, the yield-bearing version of DOLA. Originally founded by Nour Haridy in late 2020, the protocol is governed by the Inverse Finance DAO, a collective of crypto enthusiasts. Our code base is open source and maintained by the community.

sDOLA is a yield-bearing version of Inverse Finance’s DOLA stablecoin which currently generates a 30-day average yield of over 12.52% via revenues from its FiRM fixed rate lending market. sDOLA uses a custom price feed that utilizes the DOLA/FraxPyusd pool and Curve EMA to price DOLA. By adding it to Fraxlend, we can enable the minting and backing of even more FRAX and expand DOLA lending capacity against sFRAX on FiRM.


  • For: Authorize Fraxlend AMO to deposit minted FRAX into the mentioned Fraxlend pair with the mentioned max authorized allocation.
  • Against: Do nothing.
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This proposal is up for voting here: Snapshot