[old] Liquidity Creation for FRAX/AFRAX Pair

Governance Proposals Liquidity Providing
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Background

This proposal seeks to have Frax provide liquidity to Allstake in order to create a liquidity pool for the FRAX/AFRAX pair. By establishing this pool, users will be able to stake and earn rewards through both Frax and Allstake, further supporting the Frax ecosystem and its stablecoin.

Requested Liquidity

  • 200,000 FRAX total:
    • 100,000 FRAX will be deposited into Allstake to mint 100,000 AFRAX.
    • The remaining 100,000 FRAX and 100,000 AFRAX will be used to create a Curve pool for the FRAX/AFRAX pair.

Liquidity Deployment Strategy

  1. Liquidity Pool Creation: The FRAX and AFRAX tokens will be paired and used to create a liquidity pool on Curve.
  2. Staking the LP Tokens:
  • 50% of LP tokens will be staked in Convex - Curve (FRAX/AFRAX pool).
  • 50% of LP tokens will be staked in Convex - Frax (FRAX/AFRAX pool).

Yield and Rewards

  • Target FXS reward APY: ~20%
  • Allstake Points Multiplier: 2x

Benefits for Frax DAO

  • Enhanced liquidity for the FRAX/AFRAX pair, supporting price stability and deeper integration across DeFi platforms.
  • Opportunity for users to earn competitive yields on their staked FRAX and AFRAX tokens.
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Why are you posting so many of these liquidity creation posts? You are lacking a lot of necessary information to even consider this. Who are you? Who built the protocol? What are the risk? How will it impact Frax? How will you manage to get 20% FXS APY? So many things left unanswered. Why should Frax deploy liquidity into your project and not a competitor? I am all for positive sum, but I have never heard of your project before and do not see you building relationships either in the community.

1 Like
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Hi, thank you for your thoughtful feedback. I’d like to address your concerns directly:

About Allstake:
Our team is composed of crypto veterans who were founding members and early contributors to top public chains like NEAR and EOS. We’ve received angel investment from Illia Polosukhin, the co-founder of NEAR Protocol, and have official support from the NEAR Foundation.

You can find more information about us and our protocol here: Allstake Links

Risks:
The primary risk associated with our protocol is smart contract risk. However, everything we develop is fully open-source and has undergone extensive auditing. You can review our audits here: Allstake Audit

Impact on Frax:
By integrating with Allstake, Frax, sfrxETH, and FXS will gain new use cases as underlying assets for shared security, expanding their utility across multiple chains.

20% FXS APY:
To earn the 20% APY in FXS, simply deposit any of the following assets—FRAX, sfrxETH, or FXS—into Allstake.

We understand your concerns about project visibility, and we’re committed to building stronger connections within the Frax community. Thank you for your feedback, and we hope to engage further.