FIP 18 Grant for Perpetual Leverage Pool AMO by Dennis

Authors

Frax Finance Team + Dennis

Summary

Allocate $20,000 worth of FXS per month for 3 months paid monthly to Dennis with half of the amount provably locked as veFXS for 4 years. This is a total of $60k worth of FXS over 3 months in total. Dennis will build the first perpetual leverage pool AMO for FRAX. Dennis is a prominent community member that has helped us model AMOs, review code, and has a great history of improving FRAX protocol since genesis. He previously discussed the idea to build on the forum here: https://gov.frax.finance/t/leverage-without-liquidation/88

Proposal

Build a no-liquidation perpetual leverage pool for the FRAX ecosystem.

• All deposits are in FRAX.
• Users can easily take a long and short position on ETH/BTC etc.
• Fixed leverage, positions are rebalanced after every interval.
• No liquidations needed due to fixed leverage.
• Trades are against a liquidity providers pool that accrues fees.
• Open source Solidity contracts and simple UI.

Preview

Documentation and data to add to docs.frax.finance to come as project is built out with input from Frax Core Devs. Frax Core will help in front end integration and branding.