LMAP #2 bis — Add frxUSD/sDOLA (Stake DAO LP) as Collateral to the Stake DAO frxUSD v2 Vault
LMAP Framework
| Parameter | Value |
|---|---|
| Author | Stake DAO Association — Curation Working Group |
| Quorum | 15% of total vlSDT supply: 5,651,509.7 vlSDT |
| Forum debate period | 72 hours |
| Voting period | 72 hours |
| Debate and vote | Concurrent (debate and vote run in parallel) |
| Approval threshold | Simple majority (>50% of votes cast, excl. abstentions) |
| Anticipated execution | If super-quorum is reached. Super-quorum: 18,760,750 vlSDT |
Summary
This proposal seeks to authorize the addition of a new Morpho lending market within the Stake DAO frxUSD v2 vault, using the Stake DAO frxUSD/sDOLA Curve LP token as collateral and frxUSD as the borrow asset.
Following a full two-phase due diligence under Stake DAO Association's Market Risk Evaluation methodology, the collateral has been assigned an overall risk grade of B (3/6), making it eligible for listing in a High Yield vault. The proposed parameters are a supply cap of $250,000 and a LLTV of 91.5%.
Background
Inverse Finance's sDOLA is a yield-bearing CDP stablecoin built on top of the DOLA Savings Account (DSA), an ERC-4626 vault that continuously streams DBR rewards to staked DOLA and auto-compounds them into additional DOLA. The frxUSD/sDOLA Curve StableSwap-NG pool pairs sDOLA against frxUSD and is currently deployed on Ethereum mainnet.
Stake DAO wraps liquidity provided into this pool into a boosted LP position (via sdCRV gauge boosts), exposing depositors to both pool trading fees and boosted CRV rewards.
The collateral under evaluation is the Stake DAO frxUSD/sDOLA LP token — i.e., a Stake DAO strategy vault token representing a boosted position in the underlying Curve pool. As frxUSD is the borrowed asset of the target vault, the due diligence assesses only the sDOLA leg of the pool.
Due Diligence Summary
The full risk assessment spreadsheet is available at:
Market Risk Evaluation — frxUSD/sDOLA
Pre-Assessment Screening (Phase I): PASS
All 13 filters passed. Noteworthy:
-
Pool uses a StableSwap-NG design (no price_oracle() vulnerability).
-
Pool TVL: ~$1.1m at time of assessment; lowest DOLA historical price on this pool: $0.985 (well within F10 tolerance).
-
No single LP exceeds 45% (largest non-POL LP at ~31%).
Risk Assessment (Phase II)
| Layer | Grade |
|---|---|
| I. Asset Rating (sDOLA) | B |
| II. Platform Rating (Curve + Stake DAO) | S |
| III. Market Rating | B |
| Overall | B |
Red flags: 0
On-Chain Actions
- Set supply cap for this market in the Stake DAO frxUSD v2 MetaMorpho vault:
- cap = 250,000 frxUSD
- Set collateral cap for this collateral in the Stake DAO frxUSD v2 MetaMorpho vault:
- cap = 250,000 frxUSD
Off-Chain Vote
For
8.3M vlSDT100%
Against
0 vlSDT0%
Abstain
0 vlSDT0%
Discussion
Timeline
Jun 12, 2026Proposal created
Jun 12, 2026Proposal vote started
Jun 15, 2026Proposal vote ended
Jun 15, 2026Proposal updated