[ARFC] Onboard FRAX to Aave v3 Lido Instance

Author: ACI

Date: 2024-10-04

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ARFC has been updated with Risk Parameters provided by Risk Service Providers 2024-10-08

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Summary

This proposal aims to onboard FRAX to the Aave v3 Lido Instance.

Motivation

The integration of FRAX into the Aave v3 Lido Instance is driven by the following factors:

1. FRAX Adoption: Frax is also taking a new place in Aave ecosystem with harmonization between FRAX and USDC parameters.
2. Liquidity Enhancement: The inclusion of this widely-used stablecoin is expected to boost liquidity in the Lido Instance, potentially attracting more users and increasing overall platform activity.
3. Strategic Alignment: This move aligns with Aave’s goal of offering a comprehensive suite of high-quality assets, keeping the protocol at the forefront of DeFi liquidity.

Proof of Liquidity and Deposit Commitments

FRAX has pledged liquidity provision support. These will complement the ongoing incentives for the Lido Instance.

Specification

Contract addresses:

FRAX: 0x853d955aCEf822Db058eb8505911ED77F175b99e

ARFC has been updated with Risk Parameters provided by Risk Service Providers 2024-10-08

Parameter	FRAX
Chain-Instance	Ethereum-Lido
Isolation Mode	No
Borrowable	Yes
Collateral Enabled	No
Supply Cap	20,000,000
Borrow Cap	18,000,000
Debt Ceiling	-
LTV	-
LT	-
Liquidation Bonus	-
Liquidation Protocol Fee	-
Variable Base	0%
Variable Slope1	5.5%
Variable Slope2	75%
Uoptimal	90%
Reserve Factor	20%
Stable Borrowing	Disabled
Flashloanable	Yes
Siloed Borrowing	Disabled
Borrowable in Isolation	No
E-Mode Category	-

Disclaimer:

This proposal is powered by Skywards. ACI is not directly affiliated with FRAX and did not receive compensation for creation of this proposal.

Next Steps

1. If consensus is reached on this [ARFC], escalate this proposal to the Snapshot stage.
2. If the ARFC snapshot outcome is YAE, publish an AIP vote for final confirmation and enforcement of the proposal.

Copyright:

Copyright and related rights waived under CC0