FIP 32 - FRAX to participate in Vesq Token Launch

Authors Frax Comptrollers

Summary:

Vesq.io 33 is an Olympus inspired project that seeks to be the reserve currency of the Polygon ecosystem. Their prelaunch event has allocated FRAX protocol an allotment of pVESQ tokens to purchase. This proposal is to use $300,000 of AMO profits that accrue to the balance sheet to swap for pVESQ that has been allotted for our protocol.

Background & Motivation:

The Vesq Protocol is a reserve currency system being built for the Polygon ecosystem. Vesq is going to use FRAX as one of its predominant stablecoins in its treasury and issue VESQ-FRAX bonds at launch. FRAX is also going to build out its Polygon ecosystem with Vesq in lending markets, liquidity, and hopefully other collaborations to come. FRAX developers have talked to the Vesq core team multiple times.

FRAX protocol earns ~$400,000/day from AMOs. Thus, we can swap FRAX stablecoins earned as profit to participate in the Vesq.io 33 launch and show our support. This would also be a great DAO <> DAO opportunity as it aligns both protocols to grow together on Polygon.

For: Purchase pVESQ for the protocol to balance sheet

Against: Do nothing