AMO to dForce Lending Markets

Summary Activate cross-chain AMO and deploy Frax liquidity to dForce Lending (both on Ethereum and on Arbitrum), unlocking an alt¬¬¬ernative venue for Frax AMO to earn passive yields on Frax and USDC reserves.

Background dForce is building a comprehensive set of DeFi protocols covering assets, lending, trading, serving as layer 0 infrastructure in Web 3. dForce is currently deployed on Ethereum, Arbitrum, Optimism, and BSC with a TVL of over $400m. It is currently one of the largest lending protocols on Arbitrum and BSC in terms of TVL. dForce Lending has undergone extensive code reviews and security audits by Trail of Bits, ConsenSys Diligence, CertiK, Certora (formal verification), with a bug bounty launched through Immunefi. dForce lending protocol has withstood a number of market downturn and is battle-tested with more than one year of operation on-chain. Forum discussion: https://gov.frax.finance/t/partnership-with-dforce-to-accelerate-multi-chain-expansion/368

Abstract This proposal aims to expand Frax’s multi-chain liquidity and community through a partnership with dForce. We believe this integration demonstrates strong synergies between the two communities, and can help to further expand the utilization of Frax on different layers and chains. As a blockchain agnostic protocol aiming to provide underlying DeFi infrastructure powering the development of Web 3, dForce pertains to the ability to interact with differing protocols in various environment, giving users the freedom of choice to change between blockchains. Frax has proved its success with impressive growth since its launch, but in order to fulfil its vision as a decentralized currency, we believe it’s crucial for Frax to build influence far and wide in the lending market, one of the largest vehicles inside the DeFi space. As a start, dForce announced lending support to Frax on Ethereum and Arbitrum, allowing users to borrow Frax against its supported assets. We hope to build a solid partnership with Frax community to accelerate the multi-chain expansion for both in a way that benefit both communities meaningfully.

Motivation • Revenue: unlocking an alternative venue for Frax AMO to earn passive yields on Frax and possibly USDC reserves. • Exposure: dForce is one of the largest lending protocols in terms of TVL on Arbitrum and BSC. We believe dForce’s support can help Frax to consolidate and strengthen its foothold as a leading decentralized currency. • Expansion: dForce is currently deployed on Ethereum, Arbitrum, Optimism, BSC, and can facilitate faster expansion of Frax to multiple chains and layers.

Proposal It is proposed to deploy AMO with Frax liquidity (Ethereum and Arbitrum) to dForce Lending, further enhancing Frax’s ability to interact with other DeFi applications and assets in a meaningful way (i.e., supply wstETH or UNI or to borrow Frax).

Poll • For – Deploy AMO to dForce Lending • Against – Do nothing.