[Temp Check] Proposal to integrate thirdparty solutions into Frax DeFi directly

General Discussion
1

Background:
During the proposal to standardize ragequiting, it became obvious that there already are third-party solutions that might be an attractive option for users. In the ethos of Frax being positive-sum, I propose that we help projects that builds solutions on-top of our products to be integrated or featured directly on the relevant Frax-app site. This proposal was made to outline who can be eligible, in what way they can be integrated or informed about and lastly what information should be given to the users and in what way.

Solve:

  • Helps grow the Frax ecosystem
  • Shows in action Frax is positive sum
  • Can help Frax grow TVL
  • Users become more aware of their options

Proposal 1:
Inform/market directly on the relevant product pages of third-party solutions, so that users can see they have more options. Include a disclaimer that third-party option can have more risk.

Pros: Easy to implement
Cons: Less alignment with other protocols and do not help in the same degree.

Proposal 2:
Directly integrate third-party solutions into the relevant product pages, strictly as a opt-in option. Each new project that wants to be integrated has to have a proposal with a discussion-phase where they answer out all requirements. Failure to fulfil all requirements leads to automatic disqualification.

Requirements needed to be fulfilled to qualify for implementation:

  • It has to be relevant for the product site it wants to be integrated with.
  • Protocol has to be over 2 years old.
  • Core members of the protocol should be doxxed (At the minimum to our core team).
  • They have audits for all contract upgrades/changes.
  • A fee will be taken by the Frax protocol and put into a security fund in case of hacks. This fund will only be used towards users using the directly integrated solution, as a extra security. There is also an expectation that every protocol integrated have a plan in case a hack should happen, and already now take steps to mitigate damage. The fee taken has to reflect the protocols risk and economics. The fee % will be decided on a per-integration basis, and will be a crucial part of the integration proposal and discussion per project proposal.
  • There has to be ELI5 explanations made by the protocol on how their system works, with clear pros and cons given to the user. Risks must also be made clear.

Pros: Stronger alignment with protocols eligible. Helping them is helping ourself.
Cons: Hard to implement. Requires a lot of work and maintenance. More governance proposals.

Proposal 3:
Combine the two proposals. For projects unable to fulfil the requirements of proposal 2, will be showcased as proposed in proposal 1.

Pros: Maximum alignment and cooperation with other protocols.
Cons: Even harder to implement and maintain.

TEMP CHECK: Integrate third-party solutions into Frax DeFi

    1. Proposal 1
    1. Proposal 2
    1. Proposal 3
    1. No Action
0 voters
1 Like
2

Think proposal 2 has a lot of promise for adding value to the Frax ecosystem as long as the extra service is strictly opt-in with clearly explained risks/rewards. Would love to hear others’ thoughts on this

1 Like
3

Since this proposal does not directly affect the financial side of the protocol, I suggest putting up a community poll here as Temperature Check and moving the proposal into general discussion.

1 Like
4

Thank you. I updated the proposal, following your guidelines.

3 Likes