[FIP - 375] Create a new Fraxlend pair (WETH/FRAX) on Ethereum Mainnet

Authors:

@Westwood

Summary:

Propose the creation of a new Fraxlend pair on the Ethereum mainnet: WETH/FRAX with a Loan-to-Value (LTV) ratio of 82%.

Details:

• Fraxlend Pair Name: WETH/FRAX - Variable Rate V2
• Chain: Ethereum Mainnet
• Max Authorized Allocation: 10,000,000 FRAX
• Loan-to-Value (LTV): 82%

Background and Motivation:

Fraxlend is a lending platform that enables the creation of markets between pairs of ERC-20 tokens. Each pair functions as an isolated, permission-less market, allowing users to engage in lending and borrowing activities. This protocol is designed to generate new financial opportunities for the FRAX community.

Automated Market Operations (AMOs) enhance FRAX's capabilities as a leading stablecoin protocol by offering maximum flexibility and opportunities without compromising its core stability mechanisms. To date, multiple AMOs have been deployed on platforms such as Fraxlend, Aave, and Rari.

Introducing the WETH/FRAX pair into the Fraxlend AMO on Ethereum Mainnet aligns with this strategic vision. It will facilitate the minting of FRAX, secured by over-collateralized debt, further strengthening the ecosystem. Additionally, increasing the LTV to 82% makes this pair more competitive with similar offerings on Maker and Aave, thereby attracting more users and liquidity to Fraxlend.

Voting:

• For: Approve the creation of the WETH/FRAX Fraxlend pair on Ethereum Mainnet with the specified LTV and max authorized allocation.
• Against: Do not approve the creation of the new Fraxlend pair.