I want to propose a partnership between the Lobis community and FRAX. I’m extremely excited to discuss this here and get FXS holder feedback.
Right now LOBIS holds 156k of FXS tokens in its protocol assets and has been whitelisted to stake them in the veFXS contract via snapshot vote. We have a clear long-term interest in ensuring that FRAX doesn’t suffer any decentralization issues following the implementation of veFXS gauges such as a hostile takeover by flywheel DAO’s, and ensuring active participation within the governance of FRAX.
Background
Firstly, Lobis is a new project just 10 days old with a governance focussed treasury worth over $7 million, ~30% in FXS. We have a single token, LOBI, and utilize a treasury backed/RFV-style protocol with community+governance elements (LINKS IN COMMENTS).
LOBI is the token that is staked for APY (currently +126,000%) while the community partakes in various parliamentary sessions that manage the treasury or $LOBI power of the protocol. This has some similarities with OHM and we are very closely aligned with Olympus DAO, as the First Official Partner of Olympus. Our unique properties are focused on utilizing governance tokens to contribute to the decentralization of DeFi protocols and ensure they do not suffer from hostile takeovers.
I invite FXS holders to take a good look at our methodology and papers. These are linked in my comment reply due to restrictions on the number of links I can post.
We are a friendly project hugely excited to use FRAX as part of our ecosystem. We can integrate FRAX as the only stablecoin in Lobis’s treasury and our community extends a hand of genuine camaraderie since Day 1, this is proven in code by making FXS our first bond asset generating over $2,000,000 worth of demand in just a few days. I think this is an excellent opportunity for both protocols to support each other so that there is very large net value creation.
Proposal
FRAX builds a Lobis AMO similar to what’s been done with OHM. Periodically, as Lobis creates buy pressure for FXS through our bonds FRAX can send expansions to this AMO to purchase+stake LOBI (as well as add LOBI to LP pools/contracts as they are built by our community). Like the OHM AMO, this will go toward increasing FRAX’s balance sheet and also helping LOBI-FRAX liquidity so both communities can trade/invest properly. There will likely be many useful things to do with the acquired LOBI, including partaking in the wider governance of DeFi through the governance tokens in the Lobis Treasury in addition to the great yield it will accrue naturally from staking it in Lobis DAO (Over 126,000% at the time of writing). Lobis gets the predominant benefit of accruing a lot of stablecoin in its treasury at its growth phase. This is a boon for us and a good investment opportunity for FRAX. As with all AMOs, the entire operation would be conducted in line with peg goals and would not jeopardize the peg performance of the protocol.
Lobis proposes a FRAX-Lobis gauge in the medium term after a few weeks of growth+partnership between the two projects so that LPs can earn FXS+LOBI and partake in both communities directly (this can be a separate governance vote in the future so keep in mind this is separate than this proposal even though it’s mentioned now).
Lobis has selected FRAX as their predominant and first stablecoin to be used in their treasury. By selecting FRAX over all possible choices like DAI USDC FEI etc we want to show to the world FRAX’s incredible promise in tech/innovation as well as introduce our friendly community that will stand by their side.
Lobis will continue to integrate+use FRAX as the predominant stablecoin in our treasury and support+expansion efforts as we jointly build up this partnership together to make it more systematic across time.
LFG! Excited to hear what all the fraximalists have to say about this!
