FIP 37 - Solace Gauge

Hey everyone,

I’m the founder of Solace and would like to propose another gauge (

Solace Intro:

We are a DeFi insurance/Coverage protocol live on Ethereum mainnet with $41.31M in underwriting capital. Solace is backed by Aave, Polygon, NEAR grants and operates as a DAO, which consists of the core team, advisors, and some investors (you can read up more on this in our blog post, but some notable DAO members include founders and top builders from MakerDAO, Prysm, Polygon, NEAR, Zerion, Axie Infinity, StakeDAO, CoinFund, Alchemy, etc.). Complete overview can be found in this deck and in our docs, but below are a few major points.

Our unique value proposition consists of the following items:

  1. Underwriting risk. Solace is the first and only protocol to use protocol-owned capital to underwrite the risk and decouple risk/reward in the underwriting process. The underwriting pool is also united and backs the entire risk portfolio carried by the protocol, offering high capital efficiency and ability to leverage (similar to how traditional insurance firms pool risk together). Read more about the challenges, motivation, and the solution in this post
  2. Risk management. Solace is one of the very few projects focusing on intelligent risk assessment based on quantitative analysis, probability, and uncertainty modeling. We have developed a permissionless system to deploy coverage products and risk strategies (similar to what Yearn did for yield farming). Currently, we have a team of data analysts, financial mathematicians, and actuaries working on delivering new coverage products as well as managing the risk portfolio that protocol’s capital is underwriting.
  3. Claims assessment. Solace does claims parametrically with virtually instant validation and payout. All done in a single on-chain transaction, so policyholders don’t need to wait days/weeks for committees or tokenholders to vote.
  4. Cross-chain integration. While this is still WIP, our architecture is developed to support native cross-chain integration on the underwriting and coverage side of things. This means that users will be able to buy coverage policies from any chain for their liquidity on any other chain, or all at once.


Add a SOLACE-FRAX pool to Frax gauges.


Recently Solace has decided to utilize FRAX in our underwriting pool, basically allowing users to bond FRAX for SOLACE. Also users can pay in FRAX for their SOLACE call options mined in our early incentives program. We believe that it’s a great idea to boost further adoption of FRAX and Solace underwriting capacity with a gauge.


  1. This would increase FRAX liquidity since Solace will purchase and acquire FRAX and LP in the SOLACE-FRAX pool.
  2. Solace will incentivize people to bond using FRAX and provide liquidity, further growing FRAX utility and liquidity.
  3. Solace will also incentivize this gauge with SOLACE rewards.

For: Add gauge

Against: Do nothing

will the rewards from solace be a set amount per week in token terms or $ terms?
will the solace rewards be something that can increase / decrease as more people enter / leave the pool ?


Rewards will be a set amount of tokens per week, the amount will be adjusted on a regular basis based on the number of people so the apy% remains attractive. We’d target 3-digit overall apy% at the beginning to soak up more liquidity for some time, but ultimately want to drive further growth on the bonding side of things to increase the underwriting capacity of Solace

1 Like

ok , thanks for the answers


as a participant of Frax (Univ3 FRAX USDC) LP depositor- & Solace liquidity bootstrap participant, I love the proposal- per the Solace community call held last week, Nikita is a believer in Frax protocol and has very valid reponse to why the team is accepting FRAX as stablecoin for the call option excercisers.

Love to see Frax community partner with Solace