Zunami DAO Vote Id:6


The Zunami team plans to launch a new strategy - Convex finance LUSDFRAXBP pool. We have created a proposal to agree with the Zunami DAO members on adding a new strategy to the Zunami Protocol.

Description:
 

The pool consists of three stablecions: USDC, LUSD, FRAX. Сurrent APR on Convex: 14,69% (Proj. 24,32%)


LUSD 
 Capitalization: 178 644 945 $ Issued by https://www.liquity.org/
 🛡️LUSD is over-collateralized, every single DOLA in circulation is backed by ETH 🛠️ LUSD is issued via borrowing with an over-collateralized loan, like DAI.
 ⚙️ Collateral liquidation mechanism by stability pool is used.




FRAX Capitalization: 1 468 308 132 $ Issued by https://frax.finance/
 🛡️FRAX is algoritmic, 90% backed by collateral and 10% of the supply algorithmic. 🛠️ FRAX is issued via mint by USDC and FXS
 ⚙️ Most of the collateral is used in AMO https://docs.frax.finance/amo/overview
⚖️Additional peg maintenance by adjusting Frax mint/redeem rate



Strategy features:


• Swap USDT and DAI for USDC

• Deposit USDC in the lusdfraxbp pool on Curve
• Stake lusdfraxbpCrv LP tokens on Convex

• Automatic sale and reinvestment of CRV, CVX rewards.


Action:


• Add Convex Finance - LUSDFRAXBP Pool strategy as one of the Zunami Protocol strategy.
• Wait for the slippage on the deposit to decrease
• Rebalance up to 25% of Zunami Protocol funds in lusdfraxbp strategy.