[FIP - 402] Create new ETH+ Fraxlend pairs

Governance Proposals Fraxlend
1

Authors:
Michael Henry

Summary:
Propose the creation of 2 new Fraxlend pairs on the Ethereum Mainnet: ETH+/FRAX and ETH+/frxETH

Pair 1 Details:

  • Fraxlend Pair Name 1: ETH+/frxETH Variable Rate V2
  • Chain: Ethereum Mainnet
  • Max Loan-to-Value (LTV): 90%

Pair 2 Details:

  • Fraxlend Pair Name 1: ETH+/FRAX Variable Rate V2
  • Chain: Ethereum Mainnet
  • Max Authorized Allocation: $5,000,000 FRAX
  • Max Loan-to-Value (LTV): 85% (consistent with existing sfrxETH/USDC pair)

Background and Motivation:
ETHPlus is diversified ETH LST currently backed by 1/3rd sfrxEth, 1/3 wstEth, and 1/3rd rEth. With a current marketcap of over $100 million, it has proven to be one of the more popular new LSTs.

Liquidity Profile:
ETH+ taps into the underlying liquidity of sfrxEth, wstEth, and rETH when it is redeemed.

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Why Adding ETH+ to Fraxlend is Beneficial:
ETH+ has quickly become one of the largest holders of sfrxETH, holding nearly 8% of all minted sfrxETH which is the most popular Fraxlend Pair.

Voting:

  • For: Approve the creation of the ETH+/FRAX and ETH+/frxETH Fraxlend pair on Ethereum Mainnet with the specified max authorized allocation and max LTV
  • Against: Do not approve the creation of the new Fraxlend pairs.
1 Like
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After talking to Wethwood, Iā€™d like to change the ETH+/WETH pair to ETH+/frxETH so as to be more aligned with the Frax stack.

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This proposal is up for voting here: Snapshot