FIP - 70 - Ozys (KLAYswap, Meshswap) x FRAX partnership Proposal - including liquidity provision

<FRAX x Meshswap (Ozys) partnership>

Dear FRAX community users!

The proposer is Ozys team, developer of KLAYswap, Orbit chain, Belt-fi, and our upcoming DEX protocol on the MATIC ecosystem. Our team has been discussing possible potential collaboration points with the FRAX team for a long period of time.

Through a series of discussions, we are pleased to present the exclusive financial opportunities to FRAX community users as well as our newly developed DEX protocol called ‘Meshswap’. Before further elaborating on the opportunities that our new DEX protocol ‘Meshswap’ would offer to the FRAX community, kindly allow us to briefly introduce the background of our new DEX protocol.

Meshswap is a MATIC-customized version of DEX that follows the basic structure of KLAYswap and is also developed by Ozys. To be specific, KLAYswap is a Klaytn’s main DEX protocol that once took up about half of the liquidity in Klaytn ecosystem, which recorded $ 2 bil TVL(Total Value Locked) last year and ranked 17th globally. Based on the high level of performance and completeness on the product side (AMM, staking, leveraging, IDO, etc), and almost completely decentralized and effectively working governance system of KLAYswap, we are about to expand our ecosystem into MATIC ecosystem which holds more than $10 bil Market cap with our new DEX protocol, “Meshswap”.

Main proposal contents

  1. Liquidity provision of FRAX by foundation in purpose of creating a pair pool on Meshswap
  • Creating FRAX pair pool including FRAX-MATIC, FRAX-MESH in Meshswap by foundation
  • $ 10 mil for each pool (size of liquidity that withstands $10,000 transaction with less than 1% of slippage)
  1. Partnership (FRAX x Meshswap)
  • FRAX to Meshswap: liquidity provision, co-promotion

  • Meshswap to FRAX: fruitful financial opportunities to users including mining, and adding leveraging feature for FRAX in purpose of transaction amplification

  • further cooperation with Ozys team (developer of KLAYswap, Orbit chain, Belt-fi, and Meshswap)

Benefits for FRAX holders

  1. Higher return than any other DEX with high level of sustainability

Providing liquidity on Meshswap gives practical opportunities for FRAX community users to ensure higher yields than any other DEX protocol with great stability. In case of KLAYswap, paired pools consist of stable and major coins such as ETH-Tether show more than 10% in APR with high level of sustainability and zero risk in protocol level. In Meshswap, to be more specific, MESH (governance token in Meshswap) reward is given to liquidity providers of major assets (ETH, MATIC, USDT, refer that as A class asset). And one of the cooperative agenda that our team has discussed with the FRAX team is to classify FRAX as A class asset in Meshswap, which enables FRAX to mine MESH inflation reward when pairing with other A class assets.

There are two characteristics that can secure a higher level of yield than any other DEX protocol when providing liquidity in Meshswap.

  • It is not difficult to take up a large share in liquidity at the new platform and a large share would lead to higher return

  • Since MESH is a fair launch case (Per block issuing model) which would show very little supply in the initial stage, which leads to higher yield

  • Active transaction volume in the initial stages, which also leads to a higher APR in AMM system

  1. Gaining governance power with mined MESH

Meshswap is the community-driven DEX. Its native token “MESH” is the governance token that offers the opportunity for users to determine the yield rate of the protocol through our special pool voting as well as governance voting.

Basically, MESH Stakers lock up their MESH in a certain period and earn MESH, and liquidity pool voting rights (vMESH) in return. Using vMESH, Stakers can vote on specific liquidity pools to allocate more MESH rewards and receive the distributed transaction fees incurred in the voted pool. Furthermore, as stakers are one of the most active contributors to the Meshswap ecosystem, they earn additional token airdrop rewards such as Drops and Ecopot.

  • $MESH Staker can directly decide which liquidity pool to allocate more $MESH through votes.
  • By utilizing this feature, FRAX holders can vote on FRAX-related pair pools in order to increase a yield for the pair and get profit at the same time with vMESH.
  1. Leverage farming

Meshswap has a leverage feature called single/plus deposit just like KLAYswap. Assets that users deposit in a single pool are leveraged by plus pool deposit. Merits of single deposit is that users can earn a high level of interest just by depositing a single asset. Assets used in single deposit service are major assets that show a sizable amount of liquidity around many other exchanges such as ETH, USDT, XRP, and etc. On the other hand, plus deposit users can borrow assets from a single deposit and earn multiple yields than normal pair deposit in AMM.

FRAX is one of the major stable coins with abundant growth potential. However, for the leverage system to work, there must be enough liquidity within Meshswap in order to avoid any unexpected liquidation risk. We would very much like to onboard FRAX on a single and plus deposit system once the pre-condition is met.

MESH Tokenomics

Once Meshswap officially launches, full-scale yield farming will begin. Daily MESH Inflation will be distributed to the entire ecosystem daily at the same rate accordingly:

Farm (80%): It is for lenders, general/Leverage farmers, and stakers in Meshswap protocol.

vKSP Holder (5%): It is for core Klayswap users to encourage the circulation of blockchain ecosystems in the long term.

Development (5%): It is for the continuous technology development and maintenance Treasury

Treasury (5%): It is the business fund for emergencies and the future Meshswap ecosystem development.

Strategic Partner (5%): It is the incentive fund for potential Polygon Dapp partners

Community information

-Telegram: Telegram: Contact @MeshswapOfficial

-Discord: Discord

2 Likes

Hi, imo Frax can provide liquidity, but I consider the 10m Frax for the Frax-Mesh quite high considering is a newly launched token, also, where are the 10m matic supposed to come from? Frax has to buy them?

2 Likes

Dear Seba.
Thanks for your interest in our agenda and appreciate for thoughful inquiry!

In the case of Frax-Matic and Frax-Mesh pairs, the core governance coin of the Matic ecosystem, “Matic”, and “MESH”, the core governance coin of the mesh swap ecosystem, will occupy the largest portion of the exchange, and having the largest share can guarantee a high level of trading volume and safety. In this reason, they were our recommended pair pools at first.

Replying to your question, “yes”, both $50,000 worth of FRAX and $50,000 worth of other pairing coins must be purchased from the foundation ($100,000 for each pair pool : 50,000 FRAX+ 50,000 other major coin). However, it would be your foundation’s asset, not a payment. It could be a burden for the foundation to buy new type of assets; however, the inclusion of MATIC and MESH in the FRAX Foundation’s portfolio will also be positive for diversifying the portfolio and strengthening returns.

However, considering your valued opinion, it does not have to be MESH or MATIC. Any type of major assets (USDT, ETH, XRP, DAI, BTC etc.) that the FRAX foundation already possesses can be paired with FRAX so that any extra expenditure does not occur from FRAX foundation. Furthermore, after listening to your opinion and ponder on it, purchasing MESH would not be cost effective since the supply of MESH would not be sufficient due to the fair launch structure. I will revise the recommended pair on our gov proposal in a way that “FRAX + other major asset that FRAX already has” so that additional expenditure would not occur!

In summary, the best strategy might be mining mesh with “FRAX + other major”, and with acquired mesh from the pool could be used to attain gov power by staking from foundation’s stance, or create FRAX - MESH pool with mined MESH!

1 Like

I was a huge user of KLAYswap (and a big fan of Klaytn and its “governance council”), and I’m excited to see this come to Polygon! Huge opportunities for high APYs imo, and a better user experience than most dApps. I would love to see FRAX be included for blue-chip pools such as:

FRAX-wMATIC; FRAX-USDC; FRAX-wETH; FRAX-wBTC – let’s see it happen!!!

The Korean market for KLAYswap was huge, and the team is very skilled – looking forward to see the impact that MESHswap will have on the Polygon ecosystem. Let’s see FRAX get ahead of everyone else!

2 Likes

Korean degens have taken over Polygon DeFi ever since MeshSwap launched. They managed to get $200M in TVL in under 24 hours. Having “FRAX-BLUECHIP” pairs is definitely a good way to spread the adoption of FRAX as the #1 decentralised stablecoin across Asia and the rest of market that MeshSwap offers access to.

3 Likes

Getting over 400M TVL, already top 3 in Polygon!

1 Like