[FIP -413] Liquidity Creation for sfrxETH/AsfrxETH Pair

Authors:
Allstake Team

Summary:
This proposal suggests that Frax Finance allocate 100 sfrxETH to provide liquidity for the sfrxETH/AsfrxETH pair on Curve. The integration will boost staking opportunities for sfrxETH, enabling users to earn competitive yields through Allstake while enhancing the utility of sfrxETH in DeFi ecosystems.

Background and Motivation:
Allstake’s meshed restaking mechanism allows liquid staking tokens (LSTs) to be staked across multiple chains, driving deeper liquidity and new use cases. By offering liquidity to the sfrxETH/AsfrxETH pool, Frax will unlock new staking pathways for sfrxETH holders and further integrate it into the broader multichain DeFi ecosystem.

For more information: @allstake_fi | Linktree

Proposal Details:

  • Liquidity Requirement: Frax will allocate 100 sfrxETH.
    • 50 sfrxETH will be deposited into Allstake to receive 50 AsfrxETH.
    • The 50 sfrxETH and 50 AsfrxETH will be used to create a liquidity pool on Curve (sfrxETH/AsfrxETH).

Risk Analysis:
There is minimal risk associated with this liquidity provision as Frax has full ownership of the LP position and can always choose to withdraw from the pool. There is also no impermanent loss.The primary risk lies in smart contract vulnerabilities. Allstake’s contracts are fully open-source and audited. Frax’s allocation will be secured within these audited contracts.

Review Allstake’s audits here: Audits | Allstake

Voting:

  • For: Allocate 100 sfrxETH to provide initial liquidity for the sfrxETH/AsfrxETH pair on Curve.

  • Against: Do nothing.

sfrxETH/AsfrxETH Liquidity Creation

Authors:
Allstake Team

Summary:
This proposal suggests that Frax Finance allocate 100 sfrxETH to provide liquidity for the sfrxETH/AsfrxETH pair on Curve. The integration will boost staking opportunities for sfrxETH, enabling users to earn competitive yields through Allstake while enhancing the utility of sfrxETH in DeFi ecosystems.

Background and Motivation:
Allstake’s meshed restaking mechanism allows liquid staking tokens (LSTs) to be staked across multiple chains, driving deeper liquidity and new use cases. By offering liquidity to the sfrxETH/AsfrxETH pool, Frax will unlock new staking pathways for sfrxETH holders and further integrate it into the broader multichain DeFi ecosystem.

For more information: @allstake_fi | Linktree

Proposal Details:

  • Liquidity Requirement: Frax will allocate 100 sfrxETH.
    • 50 sfrxETH will be deposited into Allstake to receive 50 AsfrxETH.
    • The 50 sfrxETH and 50 AsfrxETH will be used to create a liquidity pool on Curve (sfrxETH/AsfrxETH).

Risk Analysis:
There is minimal risk associated with this liquidity provision as Frax has full ownership of the LP position and can always choose to withdraw from the pool. There is also no impermanent loss.The primary risk lies in smart contract vulnerabilities. Allstake’s contracts are fully open-source and audited. Frax’s allocation will be secured within these audited contracts.

Review Allstake’s audits here: Audits | Allstake

Voting:

  • For: Allocate 100 sfrxETH to provide initial liquidity for the sfrxETH/AsfrxETH pair on Curve.

  • Against: Do nothing.

This proposal is up for voting here: https://snapshot.box/#/s:frax.eth/proposal/0x866a65b3afbc825ef644d03f6168a339ea180534d64594ef4ae6020c9f4cb320