Authors:
Michael Henry
Overview:
We should use the Comptroller-held WBTC to generate additional protocol revenue. I believe we should do so by converting a portion into tBTC and staking it in the WBTC/tBTC curve pool.
Details:
The Frax treasury currently holds 37.9 WBTC equivalent to $2,131,571 at the time of this post. I propose staking the entire amount in the tBTC/WBTC Curve pool which is currently generating 7.16% in the Convex Curve WBTC+tBTC pool. The corresponding curve pool can be seen here: Curve.fi
Assuming current valuations and yields, Frax would earn an additional $152,620 a year by doing this.
Closing Thoughts
FRAX is sprinting towards 100% CR and needs to earn additional income however it can. This allows us to convert a non-income generating asset into an income-generating asset.
Voting:
- For: Deposit all WBTC held in the Frax Comptroller into the Convex Curve WBTC + tBTC pool.
- Against: Do nothing