[FIP - 411] Liquidity Creation for FXS/AFXS Pair

Authors: Allstake Team

Summary: This proposal recommends that Frax Finance allocate 100,000 FXS to provide liquidity for the FXS/AFXS pair on Curve. The goal is to boost liquidity and utility for FXS within Allstake’s ecosystem, offering Frax new use cases for its governance token while driving additional staking opportunities for users.

Background and Motivation: Allstake introduces new avenues for staking governance tokens across multiple chains. By providing liquidity to the FXS/AFXS pair, Frax will strengthen the market for FXS, driving further adoption and utility across different chains. Allstake's system allows for seamless integration of governance tokens into DeFi ecosystems, offering enhanced liquidity and staking incentives.

For more information: https://linktr.ee/allstake_fi

Proposal Details:

• Liquidity Requirement: Frax will allocate 100,000 FXS.
  • 50,000 FXS will be deposited into Allstake to receive 50,000 AFXS.
  • The 50,000 FXS and 50,000 AFXS will be used to create a liquidity pool on Curve (FXS/AFXS).

Risk Analysis: There is minimal risk associated with this liquidity provision as Frax has the full ownership of the LP position and can always choose to withdraw from the pool. There is also no impermanent loss.The primary risk lies in smart contract vulnerabilities. Allstake’s contracts are fully open-source and audited. Frax’s allocation will be secured within these audited contracts.

Voting:

• For: Allocate 100,000 FXS to provide initial liquidity for the FXS/AFXS pair on Curve.
• Against: Do nothing.