QIP055: Partner with Frax Finance

Proposal from Frax Finance:

This proposal is to add FXS as collateral for MAI, add MAI as collateral for FRAX and create a FRAX-MAI LP.

Partnership details:

• Add FXS as collateral for MAI. This includes FXS on all chains and derivatives of FXS.
• Frax Finance will mint 2M MAI using FXS to then seed a FRAX-MAI LP of $4M.
• Secure incentives from the DEX where we deposit the LP on to maximize volume and TVL
• Add MAI as collateral for minting/redeeming FRAX natively on Polygon

Motivation:

• Both stablecoins will benefit from an added LP
• FXS as collateral will attract a new audience to QiDao
• Increased TVL from a new collateral

Background on Frax Finance:

Frax is an algorithmic stablecoin protocol, behind FRAX. The protocol has a TVL of $1.22bn and can be bridged to 8 chains on Multichain (aka AnySwap).

Link to website: https://frax.finance/ Defillama link: https://defillama.com/protocol/frax

Quorum Standards

The option with the most votes will be accepted.

Options

• Approve partnership
• Further discussions needed