TEMP CHECK - Create New Fraxlend Pairs

Governance Proposals Fraxlend
1

Authors

Samuel Mcculloch

Summary

A Temp Check for creation of new Fraxlend Pairs RLB, UNIBOT, SNX, PENDLE, sfrxETH/ETH and sfrxETH/frxETH.

These are potential new additions to Fraxlend and the DAO should vote on which pairs they think should be added.

Background and Motivation

Fraxlend has seen significant growth over the past several months, topping out at nearly $160m in collateral value, with 14 different listed assets. All of these assets have very deep liquidity, high market penetration and represent the largest protocols and assets on Ethereum.

However, there is room for more growth. Fraxlend should offer a diverse set of borrowing options for a wider range of assets. This Temperature Check seeks to identify which pairs the Frax DAO would be interested in listing. Based on signaling, this should help determine the queue for future listings.

Voting

CHOOSE ALL PAIRS THAT YOU WANT TO SEE LISTED

  • Option 1: sfrxETH/WETH
    *Option 2: Frax/frxETH
    *Option 3: SNX
    *Option 4: PENDLE
    *Option 5: RLB
    *Option 6: UNIBOT
4 Likes
2

My comments:

  • sfrxETH/WETH
    Interesting pool for those that want to leverage up and those that want a low risk return on their ETH. Our AMO will not add WETH, but users might.
  • FRAX/frxETH
    Pool to short frxETH, not sure if this one will attract a lot of lenders, because the the lender rate must be higher than the sfrxETH rate to be profitable. A FRAX/WETH pool might be more competitive.
  • SNX,PENDLE,RLB and UNIBOT
    There is not much on-chain liquidity for these tokens, this means that liquidations will be difficult. The AMO will not be able to lend a significant amount into these pool, but users that are less risk averse might.
2 Likes
3

Thank for the comments @Denett

I saw the FRAX/WBTC and FRAX/WETH pools go up, so that eats away at one of my choices.

As for #1, the DAO shouldn’t have any exposure to the sfrxETH/WETH pool, but it potentially could garner large TVL.

For the Smaller tokens, the Protocol shouldn’t have any exposure but the lending markets should be made none the less.

1 Like
4

My comments:

  • sfrxETH/WETH
    Interesting pool for those that want to leverage up and those that want a low risk return on their ETH. Our AMO will not add WETH, but users might.
  • FRAX/frxETH
    Pool to short frxETH, not sure if this one will attract a lot of lenders, because the the lender rate must be higher than the sfrxETH rate to be profitable. A FRAX/WETH pool might be more competitive.
  • SNX,PENDLE,RLB and UNIBOT
    There is not much on-chain liquidity for these tokens, this means that liquidations will be difficult. The AMO will not be able to lend a significant amount into these pool, but users that are less risk averse might.

I agree that your insights are spot on.

1 Like