# \[FIP - 437\] Add Predeposit Vault AMO to sfrxUSD strategies on Ethereum & Fraxtal **URL:** \ **Category:** Governance Proposals\ **Created:** [October 16, 2025, 7:37am UTC](https://gov.frax.finance/t/fip-437-add-predeposit-vault-amo-to-sfrxusd-strategies-on-ethereum-fraxtal/3794 "2025-10-16T07:37:40Z")\ **Posts on this page:** 4\ **Page:** 1
**Author:** ![nader.frax](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.frax.finance/nader.frax/32/1849_2.png) [@nader.frax](https://gov.frax.finance/u/nader.frax)\ **Post date:** [October 16, 2025, 7:37am UTC](https://gov.frax.finance/t/fip-437-add-predeposit-vault-amo-to-sfrxusd-strategies-on-ethereum-fraxtal/3794/1 "2025-10-16T07:37:40Z")
**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. ---
**Author:** ![Klaasek](https://avatars.discourse-cdn.com/v4/letter/k/e0b2c6/32.png) [@Klaasek](https://gov.frax.finance/u/Klaasek)\ **Post date:** [October 19, 2025, 12:29am UTC](https://gov.frax.finance/t/fip-437-add-predeposit-vault-amo-to-sfrxusd-strategies-on-ethereum-fraxtal/3794/2 "2025-10-19T00:29:55Z")
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. ---
**Author:** ![nader.frax](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.frax.finance/nader.frax/32/1849_2.png) [@nader.frax](https://gov.frax.finance/u/nader.frax)\ **Post date:** [October 20, 2025, 1:51am UTC](https://gov.frax.finance/t/fip-437-add-predeposit-vault-amo-to-sfrxusd-strategies-on-ethereum-fraxtal/3794/3 "2025-10-20T01:51:53Z")
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. ---
**Author:** ![Klaasek](https://avatars.discourse-cdn.com/v4/letter/k/e0b2c6/32.png) [@Klaasek](https://gov.frax.finance/u/Klaasek)\ **Post date:** [October 20, 2025, 9:20pm UTC](https://gov.frax.finance/t/fip-437-add-predeposit-vault-amo-to-sfrxusd-strategies-on-ethereum-fraxtal/3794/4 "2025-10-20T21:20:20Z")
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.