Multichain FRAX AMOs [Update]

Author:

Frax Comptrollers

Summary:

Increase minting of up to $65m FRAX+FXS per chain for AMOs on the following networks: Polygon, Arbitrum, Moonriver+Moonbeam, Fantom, BSC, Solana, Harmony, Optimism, Boba Network, and Avalanche. Previous designated amount was $20m.

Background & Motivation:

FRAX has aggressively set up the infrastructure and bridging required to expand to Polygon, Moonriver+Moonbeam, Fantom, BSC, Solana, Optimism, Harmony, Boba Network, and Avalanche. With initial liquidity deployment successful, Comptrollers are ready to continue lending and liquidity market operation activities to further deep borrowing markets and trading depth on each of the above networks.

Comptrollers will continue to pick the most promising and reputable lending market and AMM per chain to conduct algorithmic market operations on, with a limit of up to $65m per chain. For minted FRAX on such chains, the Collateral Ratio (CR) will adjust accordingly on ETH L1 and keep global count across all chains. All FRAX+FXS is entirely fungible and there is only 1 CR globally across all chains so that there is no excessive minting occurring that could affect FRAX peg performance on ETH or any other chain since arbitrage is kept open across all FRAX+FXS across every network.

Note that no minting will occur above 100m FXS supply and the cap will be observed.

For: Approve cross-chain AMO minting limits

Against: Do nothing