Author
Summary
The proposal aims to incorporate new markets into Fraxlend on the Ethereum mainnet with the following specifications:
| Collateral | Asset | Rate Type | Chain | Max LTV | Treasury Authorization |
|---|---|---|---|---|---|
| sfrxETH | USDT | Variable Rate V2 | Ethereum | TBD | 10 Million |
| sfrxETH | DAI | Variable Rate V2 | Ethereum | TBD | 10 Million |
| sfrxETH | GHO | Variable Rate V2 | Ethereum | TBD | 10 Million |
| sfrxETH | crvUSD | Variable Rate V2 | Ethereum | TBD | 10 Million |
| sfrxETH | DOLA | Variable Rate V2 | Ethereum | TBD | 10 Million |
| sfrxETH | USDC | Variable Rate V2 | Ethereum | 85% | 10 Million |
Background and Motivation
The proposal seeks to introduce new markets into Fraxlend on Ethereum, offering opportunities for borrowing assets like USDT, DAI, GHO, crvUSD, DOLA, and USDC with sfrxETH as collateral. As the Frax Finance protocol continues to evolve and expand, incorporating new markets will enhance its versatility and attract a wider user base.
Partnerships and Ecosystem Growth
Where necessary, we propose bootstrapping the pools with treasury-owned liquidity. By utilizing treasury assets to provide initial liquidity, we can ensure immediate and robust liquidity for the new markets, maintain better control and stability within the pools, and align incentives more closely with the long-term health and stability of the Frax ecosystem.
In addition to using treasury-owned liquidity, we are actively seeking to fill any gaps by expanding partnerships with the protocols that issue the assets. By collaborating directly with these protocols, we aim to foster a positive sum environment that benefits all parties involved. This approach includes having asset providers natively issue their stablecoins on Fraxlend, enhancing market depth and liquidity, and ensuring a steady supply of stablecoins to meet market demand.
By focusing on stablecoins with similar ethos, sufficient demand, and liquidity, we ensure that we align with projects that share our values and vision, while also providing reliable and liquid markets for our users.
Options
- For: Deploy mentioned lending pairs on Fraxlend in Ethereum mainnet
- Against: Do nothing