[OPTIMISM] List Frax Finance assets on Venus

Summary

This proposal seeks to introduce FRAX (FRAX stablecoin), frxETH (FRAX Ethereum), and sfrxETH (staked frxETH) as supported assets on Venus Protocol on Optimism. It aims to leverage the innovative features of these assets to enhance the lending and borrowing ecosystem, provide diversified collateral options, and foster greater liquidity and user engagement within the Venus Protocol.

Background and Motivation

Frax Finance has established itself as a pioneering force in the decentralized finance (DeFi) sector, introducing stablecoins like FRAX (USD Stable) and frxETH (ETH Stable), alongside innovative staking options such as sFRAX (Staking vault targeting the IORB rate), and liquid staking solutions like sfrxETH.

Official Website: https://frax.finance/

Official dapp website: https://app.frax.finance

Documentation: https://docs.frax.finance/

Frax Finance statistics and analytics dashboard: https://facts.frax.finance/

Assets

The additional integration of FRAX and frxETH into the Venus Protocol on Optimism represents further advancement in lending and borrowing options, offering users stable and reliable assets for financial operations. Meanwhile, the inclusion of sfrxETH as collateral options capitalizes on its yield-bearing nature, providing users with the unique opportunity to enhance their investment returns while maintaining liquidity in the DeFi ecosystem.

Asset numbers on Optimism:

FRAX:

• Market Cap: $4,666,832 (As of writing)

frxETH:

• Supply: 5052 ETH / $11,997,893 MC (As of writing)

sfrxETH:

• Supply: 3052 sfrxETH / $7,959,524 MC (As of writing)

Collaboration on incentives and liquidity

In alignment with our goal to foster a continued and meaningful integration between Frax Finance assets and the Venus Protocol, Frax Finance is committed to participating in the incentivization of Venus pools along with targeting the kickstarting of lending activities within the Venus Protocol ecosystem by bootstrapping FRAX, frxETH and sfrxETH with $5K worth of each asset.

In addition to the inherent benefits of integrating FRAX, frxETH, and sfrxETH into the Venus Protocol, Frax Finance provides additional value through its commitment to providing lender incentives with algorithmic TVL based incentivization of each pool which will be renewed on a weekly basis as long as the TVL of the pools exceeds the minimum threshold of $10,000 worth of each asset.

Conclusion

This proposal outlines a strategic opportunity for Venus Protocol to embrace the growing FRAX ecosystem on Optimism, enriching its lending and borrowing platform with stablecoins and staking solutions that are aligned with the evolving needs of the DeFi community. By supporting FRAX, sfrxETH, and frxETH, Venus not only diversifies its asset offerings but also enhances its competitive edge in the DeFi space.