title: [ARFC] Add FXS to Ethereum V3 author: @0xlide + Alice Rozengarden @Alice - Aave-chan initiative created: 2023-10-13
Summary
This publication presents the community an opportunity to add FXS to the Ethereum Aave v3 Liquidity Pool.
Motivation
Frax Finance is a DeFi protocol that offers a stable protocol for issuing FRAX/FPI/frxETH and subprotocols such as Fraxlend, Fraxswap, and Fraxferry. The Frax Shares Token ($FXS) serves a dual role as both a governance token and a utility token.
The addition of FXS to Aave V3 represents the introduction of a new asset, encouraging the transition from Aave V2 to V3 and diversifying collateral assets for GHO. Furthermore, Aave DAO can utilize FXS obtained from the pool to kickstart the adoption of GHO and/or new aTokens.
Specification
The parameters shown below are supported by @Gauntlet and @Chaoslabs with diverging opinions on the LT and LTV
Ticker: FXS Contract Adress:0x3432B6A60D23Ca0dFCa7761B7ab56459D9C964D0 Chainlink Oracle: 0x6Ebc52C8C1089be9eB3945C4350B68B8E4C2233f
| Parameter | Recommendation (Gauntlet) | Recommendation (ChaosLabs) |
|---|---|---|
| Isolation Mode | YES | YES |
| Borrowable | YES | YES |
| Collateral Enabled | YES | YES |
| Supply Cap (FXS) | 800,000 | 800,000 |
| Borrow Cap (FXS) | 500,000 | 500,000 |
| Debt Ceiling | $4M | $4M |
| LTV | 35.00% | 50.00% |
| LT | 45.00% | 60.00% |
| Liquidation Bonus | 10.00% | 10.00% |
| Liquidation Protocol Fee | 10.00% | 10.00% |
| Reserve Factor | 20.00% | 20.00% |
| Base Variable Borrow Rate | 0.00% | 0.00% |
| Variable Slope 1 | 9.00% | 9.00% |
| Variable Slope 2 | 300.00% | 300.00% |
| Uoptimal | 45.00% | 45.00% |
| Stable Borrowing | NO | NO |
| Stable Slope1 | 13.00% | 13.00% |
| Stable Slope2 | 300.00% | 300.00% |
| Base Stable Rate Offset | 3.00% | 3.00% |
| Stable Rate Excess Offset | 5.00% | 5.00% |
| Optimal Stable To Total Debt Ratio | 20.00% | 20.00% |
| Flahloanable | YES | YES |
| Siloed Borrowing | NO | NO |
| Borrowable in Isolation | NO | NO |
Next Step
The following steps are as follow:
- If said snapshot is successful, escalate to an AIP.
Disclaimer
The author is not presenting this ARFC on behalf of any third party and is not compensated by Frax for creating this proposal.
Copyright
Copyright and related rights waived via CC0.
Off-Chain Vote
YAE (LTV: 35%; LT: 45%) Gauntlet
542.85K AAVE99.4%
YAE (LTV: 50%; LT: 60%) ChaosLab
1.56K AAVE0.3%
NAY
12.76 AAVE0%
ABSTAIN
1.51K AAVE0.3%
Quorum:171%
Discussion
Timeline
Oct 16, 2023Proposal created
Oct 17, 2023Proposal vote started
Oct 20, 2023Proposal vote ended
Dec 10, 2025Proposal updated