Authors
Frax Core Team
Summary
Request authorization for the protocol to issue FXB20271231 with a 30 million cap for the bond. Additionally, authorize Fraxlend AMO to deposit minted FRAX into the specified Fraxlend pair with the mentioned max authorized allocation.
| Fraxlend Pair Name | Chain | Fraxlend Pair Address | Max Authorized Allocation |
|---|---|---|---|
| FXB20271231/FRAX - Variable Rate V2 | Ethereum, Fraxtal | TBD | 25,000,000 FRAX |
Background and Motivation
FXB tokens are simple, trustless tokens that resemble a zero-coupon bond that converts to the FRAX stablecoin on maturity. FXBs are debt tokens denominated in FRAX stablecoins, not a claim on any other asset or collateral. FXBs allow the formation of a yield curve to price the time value of lending FRAX back to the protocol itself.
Fraxlend is a lending platform that allows anyone to create a market between a pair of ERC-20 tokens. 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, we have deployed multiple AMOs, including lending AMOs on the Fraxlend, Aave, and Rari protocols.
Adding new FXBs is beneficial as it expands the FRAX ecosystem’s offerings, enhances liquidity, and provides users with additional tools for managing risk and optimizing investment strategies. Adding more pairs into Fraxlend AMO is the next step in this vision, allowing the protocol to mint FRAX backed by over-collateralized debt.
Voting
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For: Authorize the issuance of FXB20271231 with a 30 million cap and authorize Fraxlend AMO to deposit minted FRAX into the specified Fraxlend pair with the mentioned max authorized allocation.
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Against: Do nothing.