Partnership with dForce to Accelerate Multi-Chain Expansion

Summary

Provide 30m Frax to bootstrap lending liquidity and deploy AMO to dForce.

Background

dForce advocates for building a full set of DeFi protocols covering assets, lending, and trading. dForce Lending is currently #1 lending protocol on Arbitrum in terms of TVL and #3 lending protocol on BSC in terms of borrowing volume.

dForce Lending has undergone extensive code reviews and security audits by Trail of Bits, ConsenSys Diligence, CertiK, Certora (formal verification), with a Bug Bounty Program launched through Immunefi .

Motivation

This proposal aims to expand Frax’s multi-chain liquidity and community through a partnership with dForce. We believe this integration demonstrates strong synergies between the two communities.

dForce is currently deployed on Ethereum, Arbitrum, Optimism, and BSC . As a blockchain agnostic protocol aiming to provide underlying infrastructure powering the development of DeFi, dForce pertains to the ability to interact with differing protocols in various environment, giving users the freedom of choice to change between blockchains.

Frax has proved its success with impressive growth since its launch, but in order to fulfil its vision as a decentralized currency, we believe it’s crucial for Frax to build influence far and wide in the lending market, one of the largest vehicles inside the DeFi space. dForce can extend lending support to Frax on Arbitrum and Ethereum, further expand the utilization of Frax on different layers.

It is proposed to provide 30m Frax to dForce (15m on Arbitrum and 15m on Ethereum) to bootstrap initial lending liquidity, further enhancing Frax’s ability to interact with other DeFi applications and assets in a meaningful way (i.e., supply BTC or UNI or to borrow Frax).

It is also proposed to deploy AMO to dForce Lending, unlocking an alternative venue for Frax AMO to earn passive yields on Frax and USDC reserves.

We hope to build a solid partnership with Frax community to accelerate the multi-chain expansion for both in a meaning way.

Proposal

  • Deploy 30m Frax to dForce Lending (15m on Arbitrum, 15m on Ethereum)
  • Deploy AMO to dForce Lending
13 Likes

agree , win-win !!! ;^)

5 Likes

Interesting proposal, looking forward this could create strong cooperation between the two communities. I have personally review the dForce lending protocol, here are some concerns:

  1. You have been experienced lots of audits, but practice is always more complex than theory, how do you keep your product safe enough to use practically?
  2. How is that different between dForce lending and other lendings such as Compound, AAVE, what’s your advantage?
  3. How does dForce manage the protocol, I didn’t see any DAO here. What’s your plan?
3 Likes

Good catch!

  1. Security concerns

Security is the most important thing we care about, with uncapped budget for external audits as needed. dForce Lending has gone through extensive code reviews and security audits by Trail of Bits, ConsenSys Diligence, CertiK, Certora (formal verification), as well as a Bug Bounty program through Immunefi to encourage security researchers, white hats, community’s participation in identifying potential vulnerabilities in dForce protocols and receive bounty rewards.

We have very stringent process with respect to new asset/collateral support, including multi-dimensional risk assessment for respective asset, from liquidity test to loan-to-value ratio.

We also implement a 24/7 on-chain monitor that keeps watch on irregularities, with several contigency plans in place.

Onboarding new asset / collateral must be approved by DF holders through Snapshot.

  1. Competitiveness

Unlike Compound and Aave, dForce integrates multiple protocols into a matrix, with lending and native stablecoins (USX, EUX) at its core.

dForce is currently deployed on Ethereum, Arbitrum, Optimism, BSC. As a blockchain agnostic DeFi project, we wish to connect as many blockchains as possible to give our users the best of all worlds. By integrating with dForce, users of FRAX is able to take full advantage of DeFi across different blockchains to improve their investment returns. From FRAX’s perspective, it will encourage growing adoption and expansion of utilization across a wider base of audience.

The to-be-launched dForce Vault is going to expand coverage to a broader category of assets with different risk models (customized risk parameters for respective asset), including liquidi staking assets, LP tokens, RWAs, and more Web 3.0 primitives, etc. We hope FRAX can join our journey to explore the exciting epoch together.

  1. DAO governance

dForce is a DAO project with dForce token (DF) empowering the governance process. DF token holders can make proposals through our Forum and vote through Snapshot to collectively decide on proposed protocols changes across the entire dForce network, including new asset and collateral support, parameter setup and adjustment, protocol integration, etc.

Hope the above clarify your queries. Give me a shout if you require any further clarification.

3 Likes

Good to see this proposal. It is essential to keep growing FRAX to as many DeFi protocols as possible.

Great initiative I think we should be making this happen ASAP


agree , win-win

Support. There are numerous possibilities that could benefit both protocols (as well as communities). Whitelisting FEI could help encourage such future collaborative efforts.

Yeah, support this proposal, I love dForce protocol, it is easy to use. Hope the new cooperation can make both two grow faster and faster.

Vote through Snapshot: Snapshot