FRAX Asset Acquisition Fund

We just voted to buy another $2m of TEMPLE to add to our current TEMPLE position and I feel this may indicate that we (The people of FRAX) are looking to add to our current Protocol assets, so i would like to propose the following.

We allocate $1m per month to add to our current protocol assets with the following rules.

  1. we only buy assets that add to a current protocol holding of that asset.
  2. we vote each month on what to buy.
  3. If an asset wins a vote they are not included in vote for the following month.
  4. The option to “do nothing” must be included in each vote.

I see this as a good way to add to our holdings, increase the power of veFXS voting and give smaller veFXS holders a chance to be included (as voting is free). It also gives more value to having a FRAX partnership or DAO-DAO swap as it would then mean the other protocol will be added to the monthly asset Acquisition list and could increase buying pressure in other assets we choose to work with.


Personally don’t think it should be limited to assets the protocol currently holds.

Accumulating Convex early and being the biggest DAO holder has been one of the largest driving forces in the parabolic expansion of Frax supply recently.

i believe it could be beneficial to emulate this strategy on other chains that will have their own native versions of Curve and Convex.

A couple examples are:
Sunny attempting to become the Convex for Saber on Solana
YieldYak is trying to be the Convex for Platypus on Avax
Radial is attempting to be the Convex for Solidly on FTM

It has to be a limited list as we cant have 10,000+ coins on each vote.

Limiting it to coins we already hold means we have already voted to buy, earn or swap for them already, therefore showing the FXS holders are happy to add them assets to the protocol.

This would not stop the protocol adding coins we dont currently hold. If a new coin comes along anyone can put up a vote to buy, swap or earn that coin and if that vote passes the new coin will be added to the protocol holdings and in turn added to the next vote for extra asset acquisition.

if someone feels these would be good places to deploy FRAX protocol assets then they can put up a proposal for each one and if they are voted in then the new coins will be added to the asset acquisition votes.

Buying and earning coins that came with CURVE voting power has worked out well for us and I think its a good idea to have the option to buy more monthly and compound our holdings at a faster rate.

should it be $1m … should it be $5m ?

should it be monthly? or every 3 months?

also, we hold a lot of funds on exchanges like Uniswap, but we dont own any UNI. should protocols we interact with but dont own also be on the list ?

one thing we could do to solve this, what if one of the voting options was to let the FRAX committee choose what to spend the money on that month, and give them the option to buy anything they think is good for FRAX , if we hold that coin or not ?

just to be clear, $2m is about 4 days worth of protocol profits. so this vote would control about 13% of the protocols earnings.

but this %’ s will drop as earnings go up over time if we keep it at $2m a month.

im seeking clarity from the team to find out if this vote passed or not as its unclear what quorum we needed for it to pass.

no reply from the team about the quorum as yet, so im just gonna assume it past and put up the vote on the 1st of next month unless i hear anything before then.

there’s 2 options,

a, the vote did not pass quorum and the next vote will also be void.

  • in this case the team would simply not buy anything, but we will know what the voters want to buy.

b, the vote did pass quorum.

  • in this case the next vote (where we vote for what to buy) will also be valid and the team will buy what we voted for.

Sam has confirmed that votes after FIP-43 needed to hit the new quorum standards of 5% of all voting power.

with 1.3m votes we did not hit this, so this proposal will not be acted on.