[Frax] [FIP - 216] Activate AMO that lends FRAX to Flux Finance

Quorum: 7.79m CVX

Summary

This is a proposal to onboard and activate an AMO that lends FRAX to Flux Finance. We propose a Max Allocation Cap for the AMO of 2MM FRAX to get the community comfortable with the workflows. Flux Finance is a decentralized lending protocol developed by Ondo Finance that enables over-collateralized lending and borrowing in a peer-to-pool model. The protocol is a fork of Compound V2 with minor modifications related to permissioning that have been audited through code4rena. Loans on Flux are overcollateralized by the Ondo Short-Term US Government Bond Fund (OUSG), a class of limited partnership interests in Ondo I LP, a Delaware limited partnership. OUSG is backed by investments in the Blackrock iShares Short Treasury Bond ETF (SHV) and uses third-party regulated service providers for custody, fund administration, and auditing. This proposal begins by providing an overview of Ondo entities and the structure of OUSG before turning to Flux and its FRAX Lending Pool.

FRAX Governance Note: Due to character limitation of Snapshot, details about this proposal are not posted here but they can be found in the Frax Gov Forum : https://gov.frax.finance/t/fip-216-activate-amo-that-lends-frax-to-flux-finance/2259#contents-2

Voting

• For: Authorize up to $2M FRAX for the FLUX AMO.
• Against: Do nothing.