[FIP - 437] Add Predeposit Vault AMO to sfrxUSD strategies on Ethereum & Fraxtal

Authors Frax core team

Summary

This proposal amends FIP-434 by adding a new Predeposit Vault AMO to the sfrxUSD strategy framework.

The Predeposit Vault AMO authorizes the sfrxUSD system to deploy approved underlying assets, each with an associated governance-approved cap, into verified predeposit vaults, such as those managed by Veda, Hourglass, and Concrete, that provide short-term, yield-bearing opportunities prior to full vault launches of new blockchains similar to what blockchain launches such as Berachain and Plasma offered.

Background and Motivation

Under FIP-434, the sfrxUSD framework was expanded to support multiple risk-adjusted AMO strategies, enabling active management of its reserves to optimize yield while maintaining collateral integrity.

As new protocols introduce predeposit campaigns — structured early-access programs for yield vaults — sfrxUSD can further enhance capital efficiency by participating through a transparent, governance-approved mechanism.

Formalizing this Predeposit Vault AMO ensures:

• Participation in such opportunities within the risk and governance boundaries of sfrxUSD.
• On-chain custody and direct Frax control over all deposits.
• Independent caps per underlying asset to limit exposure and align with the sfrxUSD risk framework.

Proposal

• Enable sfrxUSD to deploy approved underlying assets into verified predeposit vaults that offer yield opportunities prior to full product launches.
• Limited to audited and governance-approved vaults (e.g., Veda, Hourglass, Concrete). And additional vaults may be approved by governance in the future.
• Includes frxUSD and its underlying assets, (s)USDe, dUSD, and reUSD.
• Each underlying asset will have a distinct governance-approved cap defining its maximum exposure within the Predeposit Vault AMO.
• Asset-specific caps remain identical to those defined under FIP-434
• All deposits are made through contracts owned or controlled by the Frax Protocol or Frax Core Team multisig signers.
• The sfrxUSD AMO retains full withdrawal rights at any time.

Voting

• For: Add the Predeposit Vault AMO to sfrxUSD strategies.
• Against: Do nothing.