Liquidity Creation for FRAX/AFRAX Pair

Governance Proposals Liquidity Providing
1

Introduction

Allstake is an omnichain (re)staking protocol enhancing staking rewards across blockchains by providing shared security and flexible liquidity solutions.

Background

This proposal requests Frax to provide liquidity to Allstake to establish a Curve liquidity pool for the FRAX/AFRAX pair. Users will be able to stake FRAX and AFRAX, earning dual rewards through Frax and Allstake.

Requested Liquidity

  • 200,000 FRAX total:
    • 100,000 FRAX to mint 100,000 AFRAX via Allstake.
    • Combine 100,000 FRAX and 100,000 AFRAX to create a Curve pool.

Liquidity Deployment

  • 50% LP tokens staked in Convex - Curve (FRAX/AFRAX).
  • 50% LP tokens staked in Convex - Frax (FRAX/AFRAX).

Yield and Rewards

  • Allstake Points Multiplier: 2x

Benefits for Frax

  • Increases utility: additional earning opportunity for FRAX holders
  • Promotes long-term holding of FRAX.
  • Strengthens Frax’s multichain presence with new staking and liquidity options as Allstake supports Frax on NEAR and Fraxtal
  • No impermanent loss