Vote 35: Whitelist Flux Lending Strategy for use in Gro Protocol

Summary

• The proposal aims to whitelist a vault for lending USDC to the Flux Finance Lending Pool
• For a detailed description, please refer to the GRFC forum post

Voting Options

• FOR: Approve the strategy for whitelisting on Gro Protocol
• AGAINST: Do not approve the strategy for whitelisting on Gro Protocol
• ABSTAIN: No opinion on approving this strategy for whitelisting on Gro Protocol

Implementation

• Add the fUSDC Flux Finance Strategy to the list of whitelisted strategies.
• Implement the mechanism, which will allow Gro Protocol funds to be allocated to this strategy
• Rebalance the Gro Protocol and allocate funds to the fUSDC Flux Finance Strategy (if applicable)

Pros

• The stability of Flux's tokenized Treasuries minimizes the risk of bad debt
• Ondo Finance's self-sustaining approach, prioritizing essential financial services over external incentives, solidifies the project's enduring viability
• The introduction of a newly whitelisted protocol would empower Gro Protocol with an enhanced and diversified strategy allocation, expanding the selection beyond Curve pools

Cons

• While the lending interest rates for supplying are competitive compared to larger money market protocols, the on-chain adoption appears to be relatively limited

Timeline & Next Steps

Vote 35 will run for 5 days on a simple majority basis.

If Vote 35 is passed, the fUSDC Flux Finance strategy will be added to the protocol whitelist, meaning there is DAO authority to allocate protocol funds (within the maximum Vault exposures).

Future strategies can be suggested and voted on by the DAO, and at any time community members can also propose a removal of a strategy from the current whitelist.