[FIP - 109] Create Fraxlend AMO

Authors

Frax Core Team

Summary

Create a Fraxlend AMO and authorize up to $5m worth of liquidity for each of the following Fraxlend pairs.

Fraxlend Pair Name	Fraxlend Pair Address
FraxlendV1 - Wrapped BTC/Frax - Variable Time-Weighted Interest Rate - 1	0x32467a5fc2d72D21E8DCe990906547A2b012f382
FraxlendV1 - Wrapped Ether/Frax - Variable Time-Weighted Interest Rate - 2	0x794F6B13FBd7EB7ef10d1ED205c9a416910207Ff

Background and Motivation

Fraxlend is the newest product of Frax Finance. It is a lending platform that allows anyone to create a market between a pair of ERC-20 tokens. Any token part of a Chainlink data feed can be lent to borrowers or used as collateral. Each pair is an isolated, permission-less market that allows anyone to create and participate in lending and borrowing activities. This platform will open new financial opportunities for the FRAX community.

Automated Market Operations (AMOs) make FRAX one of the most potent stablecoin protocols, creating maximum flexibility and opportunity without altering the base stability mechanism that made FRAX a leader in the stablecoin space. So far, we have deployed multiple AMOs, including lending AMOs on the Aave and Rari platforms.

Creating a Fraxlend AMO is the next step in this vision, allowing the protocol to mint FRAX backed by over-collateralized debt.

In the future, other Fraxlend pairs, along with the selected max authorized budget, can be added to Fraxlend AMO through a governance vote.

Proposal

• For: Create a Fraxlend AMO and authorize up to $5m worth of liquidity for each of the mentioned Fraxlend pairs.
• Against: Do nothing.