Summary
This proposal advocates for the allocation of Frax Protocol-Owned-Liquidity (POL) on Balancer v2 on Fraxtal. Frax will deposit into Balancer with the ability to stake their pool tokens in their preferred rewards contracts (e.g. Aura).
| Pool | Address | Child Gauge | Root Gauge | Max Allocation |
|---|---|---|---|---|
| sFRAX / sDAI | 0xA0b92B33BeafcE388Ce0092afDcd0cA77323Eb12 | 0x34E040bC0342EbBfBC7a6306EB1B8E6579185c94 | 0x58e71Af9CE4378b79dAAf2C4E7be9765c442dFC2 | $15,000,000 |
| FRAX / USDe | 0xa0Af0B88796C1aA67e93db89FEAd2Ab7aA3D6747 | 0xf99d875Dd868277cf3780f51D69c6E1F8522a1e9 | 0x259371cA8AC5E7F3163704Ce58B0dA58820173ed | $15,000,000 |
| sFRAX / sUSDe / sDAI | 0x33251abeCb0364Df98a27A8D5d7b5CCddc774c42 | 0x275e8514b83479f526673327B279753aBC666a05 | 0xEA8Ba6b0cB5908A5d803b01CeAea5a6E65D33508 | $15,000,000 |
| sFRAX / sfrxETH | 0x1570315476480fA80ceC1FFF07A20c1df1aDfD53 | 0x71c365fB739faFdba44B1564558849216de69958 | 0x5f0a99997ab2AcC5097dc5349aDF6985761336ac | $10,000,000 |
As members of the Frax team have mentioned, Fraxtal’s vision is to become the ‘M2 chain’ (e.g. yield bearing assets such as sFRAX are native and foundational), whereas Ethereum mainnet is akin to an ‘M1 chain’ (e.g. ETH isn’t inherently yield bearing). Balancer has solidified its position as a primary liquidity hub for yield bearing assets across the EVM ecosystem evident with over $500m in LST and LRT TVL. Its unique, yet battle-tested, AMM design makes Balancer well positioned to support Fraxtal as an integral part of Fraxtal’s liquidity layer for both yield bearing assets and core strategic liquidity.
While Balancer and Frax have a longstanding and meaningful relationship, this proposal further solidifies that relationship for the betterment of both protocols by establishing the Balancer AMO on Fraxtal with the authorization of Frax POL for certain initial strategic pools on Balancer.
Proposal Details
Allocate a portion of Frax’s POL of sfrxETH, sFRAX, sDAI, FRAX, USDe, and sUSDe into Balancer pools on Fraxtal. The sFRAX / sDAI, sFRAX / sUSDe / sDAI, and sFRAX / sfrxETH pools will be considered core pools on Balancer.
All four pools will be eligible for BAL and AURA rewards.
Voting
- For: Authorize Frax to allocate the specified POL in Balancer Pools on Fraxtal
- Against: Do nothing