[FIP - 437] Add Predeposit Vault AMO to sfrxUSD strategies on Ethereum & Fraxtal

Governance Proposals
1

Authors
Frax core team

Summary

This proposal amends FIP-434 by adding a new Predeposit Vault AMO to the sfrxUSD strategy framework.

The Predeposit Vault AMO authorizes the sfrxUSD system to deploy approved underlying assets, each with an associated governance-approved cap, into verified predeposit vaults, such as those managed by Veda, Hourglass, and Concrete, that provide short-term, yield-bearing opportunities prior to full vault launches of new blockchains similar to what blockchain launches such as Berachain and Plasma offered.

Background and Motivation

Under FIP-434, the sfrxUSD framework was expanded to support multiple risk-adjusted AMO strategies, enabling active management of its reserves to optimize yield while maintaining collateral integrity.

As new protocols introduce predeposit campaigns — structured early-access programs for yield vaults — sfrxUSD can further enhance capital efficiency by participating through a transparent, governance-approved mechanism.

Formalizing this Predeposit Vault AMO ensures:

  • Participation in such opportunities within the risk and governance boundaries of sfrxUSD.
  • On-chain custody and direct Frax control over all deposits.
  • Independent caps per underlying asset to limit exposure and align with the sfrxUSD risk framework.

Proposal

  • Enable sfrxUSD to deploy approved underlying assets into verified predeposit vaults that offer yield opportunities prior to full product launches.
  • Limited to audited and governance-approved vaults (e.g., Veda, Hourglass, Concrete). And additional vaults may be approved by governance in the future.
  • Includes frxUSD and its underlying assets, (s)USDe, dUSD, and reUSD.
  • Each underlying asset will have a distinct governance-approved cap defining its maximum exposure within the Predeposit Vault AMO.
  • Asset-specific caps remain identical to those defined under FIP-434
  • All deposits are made through contracts owned or controlled by the Frax Protocol or Frax Core Team multisig signers.
  • The sfrxUSD AMO retains full withdrawal rights at any time.

Voting

  • For: Add the Predeposit Vault AMO to sfrxUSD strategies.
  • Against: Do nothing.
1 Like
2

Veda has held paladin’s contracts hostage, not done their job in claiming fee’s etc. The rest looks good, but I will personally not vote for a proposal with them guarding anything, I will encourage anyone to vote against it until they are removed.

3

Thanks a lot for your comment, as we discussed in the Proposal section, Frax Protocol only deposit to the predeposit vaults if :

  • All deposits are made through contracts owned or controlled by the Frax Protocol or Frax Core Team multisig signers.
  • The sfrxUSD AMO retains full withdrawal rights at any time.

So these guard rails can prevent situations like what you mentioned.

4

That’s good to hear, from a risk profile. then I will retract `, I will encourage anyone to vote against it until they are removed.`
However I will still stand by not voting for it. Since I believe in your guys thesis of positive sum, and the opposite of adding in bad players create negative sum effect.

1 Like