[GIP-29] FRAX Pool

Motivation

Gearbox has gotten noticeable traction after the launch of Leverage Ninja mode. FRAX related assets have become the most popular since then with more than $25M worth of FRAX/3CRV and $4M worth of FRAX/USD convex/curve pools* which makes it reasonable to consider adding a separate Gearbox FRAX pool in order to increase available liquidity and decrease liquidation risks at the same time.

Proposal

Taking into account the popularity of FRAX related assets as well as recent proposal from the FRAX community to seed FRAX pool with 2M FRAX**, I propose to create a new pool: FRAX 0x853d955aCEf822Db058eb8505911ED77F175b99e with the same parameters as for the USDC and DAI pools (100k min borrow and 1M max borrow). This would help to attract liquidity from FRAX holders and also allow less risky FRAX borrowing and bigger leverage when using FRAX as collateral.

Set up Asset LTs for FRAX pool as below:

Token FRAX pool LT (%)
WETH 85
stETH 82.5
WBTC 85
USDC 92
DAI 92
FRAX 94.5
USDT 90
sUSD 90
gUSD 90
LUSD 90
steCRV 82.5
cvxsteCRV 82.5
FRAX3CRV-f 90
cvxFRAX3CRV-f* 90
3Crv 90
cvx3Crv* 90
LUSD3CRV-f 90
cvxLUSD3CRV-f* 90
crvPlain3andSUSD 90
cvxcrvPlain3andSUSD* 90
gusd3CRV 90
cvxgusd3CRV 90
crvFRAX 90
cvxcrvFRAX 90
yvDAI 90
yvUSDC 90
yvWETH 82.5
yvWBTC 82.5
yvCurve-stETH 82.5
yvCurve-FRAX 90
CVX 25
FXS 25
LQTY 0
CRV 25
LDO 0
SNX 25

GEAR liquidity mining incentives shall be discussed and voted in a separate proposal.

*Check assets stats on the Gearbox Dune Dashboard Gearbox Protocol Dashboard and the Gearbox Credit Accounts Report Gearbox Credit Accounts

**Snapshot voting on FRAX proposal

https://snapshot.org/#/frax.eth/proposal/0x3b1509fd9347e5b409f2623a1ad84ae50b6a02da2bc7b69805c474ee3497ec32

Great proposal. FRAX is pretty stable aset and assessing risks for allowed tokens similar to USDC/DAI pools seems smart.

1 Like

I agree that FRAX is a a suitable addition, but thinking about the idea that the lending pools are in essence isolated. (the lent ETH, can never be exposed to any sort of a FRAX supply risk). there is little reason not to add largecap, adopted assets. Its mostly a factor of will it get enough supply and then will that supply get utilized.

3 Likes

Dropping here some stats:

Now FRAX-utilized pools has 26M of 80M Credit Account’s TVL.

2 Likes

https://snapshot.org/#/gearbox.eth/proposal/0x9dc52b89ecf18d8387ecaeefc05cf16ba819c63b9ba96db5a3abe10b7c2ef7bb

In support. FRAX has proven time and time again they can gracefully expand and contract to maintain peg, full confidence.

1 Like

Update: the pool creation is pending coordination with Frax development team, to kickstart the pool closer to the required date. Naturally, the launch of FRAX pool is conditional upon finalizing that work first.

1 Like