Increase Frax ecosystem adoption on Optimism

Despite the bear market L2’s are flourishing. With the launch of FraxFerry and the success of frxETH on mainnet, I propose to grow our ecosystem on the main L2s. This proposal starts with Optimism as I believe there are currently the most cost-effective growth opportunities.

See below a list of ideas that can be turned into FIPs and separate snapshot votes. With this post I’m looking for feedback, check if there is interest, and determine parameters.

  1. Allow staking/unstaking of frxETH/sfrxETH on Optimism (if feasible).

  2. Deploy FRAX/sfrxETH lending pair through Fraxlend on Optimism. It’s one of the most utilized lending pools, and a great way to increase the adoption of sfrxETH on Optimism. Requires deep liquidity of frxETH on Optimism first, in order scale, as it needs to be possible to liquidate underwater positions.

  3. Vote and Bribe for the following pools on Velodrome

  • (W)ETH/frxETH (new)
  • FRAX/FXS (already exists and voted for with Frax’s veNFT)
  • FRAX/USDC (already exists and voted for with Frax’s veNFT)
  • FRAX/sUSD (already exists and voted for with Frax’s veNFT)
  • FRAX/OP (already exists and voted for with Frax’s veNFT)

This will increase liquidity/adoption of (s)frxETH, and we can also use this to increase the liquidity and stability for FRAX.

  1. Reach out to Lido to jointly incentivise a sfrxETH/wstETH pool on Velodrome
    An ETH pool that gets ETH staking rewards through Lido and Frax’s LSD with additional incentives on top. This will be one the best yielding pools for ETH with a very high demand.

  2. Join Velodrome’s “Tour de OP” programme (Our Optimistic Future. Velodrome is a decentralized exchange… | by Velodrome (🚴,🚴) | Nov, 2022 | Medium). Frax received a veNFT from Velodrome when it launched and is using it to drive some liquidity to the pools mentioned above. By using bribes, POL, and our veNFT, we can increase liquidity and adoption on Optimism at limited cost, or even revenue positive. This is possible because Optimism is incentivising the growth of the ecosystem with their Governance Fund, of which Velodrome is a large recipient.

  3. Apply for a grant from the Optimism Governance Fund to incentivise the usage of the Frax Ecosystem on Optimism (FraxSwap, FraxLend, FraxFerry). See What is the Optimism Collective? | Optimism Docs.

  4. Create / Incentivise a (W)ETH/frxETH pool on Curve on Optimism, similar to mainnet. Note that Curve also received a Optimism Grant, so it potentially can get some additional OP incentives as well.

Made adjustments based on feedback in Telegram.

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