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BB-FUSE-02: Add FRAX for Borrowing

Voting ended over 4 years agoSucceeded

FRAX is an algorithmic stablecoin that is partially collateralized by USDC at a rate determined by the floating market price of FRAX. When FRAX dips below $1, its USDC collateralization ratio increases until the market returns to parity; when above $1, its USDC collateralization ratio decreases accordingly.

FRAX has held its peg remarkably well over time, even during high volatility periods in the market:

  • https://www.coingecko.com/en/coins/frax

FRAX makes for an interesting addition to our Fuse pool because of a program they refer to as an Algorithmic Market Operation. It would allow FRAX to periodically mint stablecoins into our Fuse pool to satisfy demand.

  • https://docs.frax.finance/amo/frax-lending

FRAX could prove to be a powerful partner, especially if our Fuse Pool demand for stablecoins quickly outstrips supply with SY jTokens and SA senior tokens getting added over the coming weeks.

Off-Chain Vote

Yes
101.52K 100%
No
0 0%
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Timeline

Aug 23, 2021Proposal created
Aug 23, 2021Proposal vote started
Aug 25, 2021Proposal vote ended
Oct 26, 2023Proposal updated