[FIP - 207] Authorize matching FRAX from the FXS buyback fund with Frax's ARB airdrop to create ARB-FRAX liquidity

Authors

Samuel McCulloch

Summary

Authorize matching FRAX from the FXS buyback fund with Frax's ARB airdrop to create ARB-FRAX liquidity using funds set aside from FIP-77.

Background and Motivation

In June of last year, Frax was appropriated $20m dollars in FIP-77 to use for FXS buybacks. Since being approved, approximately $2m FRAX has been used for this purpose.

On March 23, 2023, Frax received over 500,000 ARB from the Arbitrum Foundation as part of their airdrop. Frax can either use this ARB to take part in governance or it can be used to deepen liquidity on Curve, Fraxswap and Uniswap. Frax should be allowed to use part or all of the FXS buyback fund to create new protocol owned liquidity on Arbitrum using part or all of its ARB airdrop.

PROPOSAL

• For: Authorize matching FRAX from the FXS buyback fund with Frax's ARB airdrop to create ARB-FRAX liquidity.

• Against: Do nothing