[AAVE] [ARFC] Add sFRAX on Ethereum V3
Title: [ARFC] Add sFRAX on Ethereum V3
Author: @0xlide, @SaucyBlock and ACI (Aave Chan Initiative)
Date: 2024-01-18
Summary
This publication presents the community an opportunity to add sFRAX to the Ethereum Aave V3 Liquidity Pool.
Motivation
Staked FRAX (sFRAX) is an ERC-4626 staking vault that distributes a portion of the Frax Protocol yield. sFRAX APY attempts to roughly track the interest on reserve balances (IORB) rate of the United States Federal Reserve.
Integrating sFRAX as collateral asset in the Aave V3 Ethereum Pool has the potential to create new demand for borrowable assets on Aave V3, such as stablecoins and FXS.
Specification
Ticker: sFRAX Contract Adress: 0xA663B02CF0a4b149d2aD41910CB81e23e1c41c32 Chainlink Oracle: 0xB9E1E3A9feFf48998E45Fa90847ed4D467E8BcfD
| Parameter | Recommendation |
|---|---|
| Isolation Mode | NO |
| Borrowable in Isolation | NO |
| Stable Borrow | NO |
| Enable Borrow | NO |
| Enable Collateral | YES |
| Loan To Value | 70.00% |
| Liquidation Threshold | 75.00% |
| Liquidation Bonus | 6.00% |
| Reserve Factor | 20.00% |
| Liquidation Protocol Fee | 20.00% |
| Supply Cap(sFRAX) | 10.00M |
| Borrow Cap(sFRAX) | N/A |
| Uoptimal | N/A |
| Base | N/A |
| Slope1 | N/A |
| Slope2 | N/A |
Next Steps
- If consensus on ARFC stage is reached and risk service providers provide feedback on risk parameters, escalate to ARFC snapshot stage.
- If ARFC snapshot stage outcome is YAE, escalate to AIP stage
Disclaimer
ACI is not presenting this ARFC on behalf of any third party and are not compensated by any entity for creating this ARFC.
Copyright
Copyright and related rights waived via CC0.
Off-Chain Vote
YAE
10 HVAXVC76.9%
NAY
2 HVAXVC15.4%
Abstain
1 HVAXVC7.7%
Discussion
Timeline
Jan 25, 2024Proposal created
Jan 26, 2024Proposal vote started
Jan 28, 2024Proposal vote ended
Apr 08, 2026Proposal updated