[FIP-278] Acquire CRV with DAO treasury funds

Author

Originally Samuel Mcculloch, final Frax Core Devs Revision

Summary

This FIP proposes to acquire CRV using FRAX DAO treasury funds to support Frax's role in DeFi and increase liquidity across all FRAX/FrxETH/FPI pairs and rebalance part of FRAX DAO’s treasury funds.

Background and Motivation

Curve Finance has garnered significant attention for facilitating efficient stablecoin trading. The recent exploit within the Curve Finance ecosystem, coupled with market dynamics, has led to a favorable CRV token price. This presents an advantageous window to accumulate CRV tokens.

By acquiring CRV tokens through an OTC deal, Frax aims to solidify its presence within the CRV ecosystem and tap into the growth potential of Curve Finance. This strategic move is driven by a forward-looking perspective that anticipates the expansion of Curve Finance and the potential value it can bring to Frax's ecosystem.

Proposal

This proposal suggests the OTC acquisition of CRV tokens using 1 million FRAX from the Frax DAO treasury at the same price as the prior OTC transactions conducted by Curve founder Mich. The acquired CRV will not be sold but instead staked in veCRV (through Frax’s whitelisted locker) and/or staked in cvxCRV. The CRV acquisition will enhance Frax's presence within the curve ecosystem and position the protocol for future growth.

• For: OTC acquisition of CRV tokens, using 1 million FRAX from the Frax DAO treasury
• Against: Do nothing