Add FRAX Arbitrum Aave v3
01Summary
Proposal to add FRAX stablecoin to Aave v3 on Arbitrum with specified risk parameters (7M supply cap, 5.5M borrow cap, 70% LTV). Enables FRAX borrowing and lending on Arbitrum, allowing Frax Finance to deploy a Lending AMO similar to their Aave v2 Ethereum deployment.
- Type
- protocol addition
Key changes
- Add FRAX token (0x17FC002b466eEc40DaE837Fc4bE5c67993ddBd6F) to Aave v3 Arbitrum as borrowable and collateralizable asset(high)
- Set Supply Cap at 7.00M FRAX units and Borrow Cap at 5.50M FRAX units(high)
- Configure LTV at 70% and Liquidation Threshold at 75% with 6% liquidation bonus(high)
- Enable Isolation Mode and Flashloan functionality for FRAX(medium)
- Set variable interest rate slope 1 at 4% and slope 2 at 75% with 10% reserve factor(medium)
- Disable stable borrowing for FRAX(medium)
Generated by Kvorum
02Description
Simple Summary
This publication presents the community an opportunity to add FRAX to the Arbitrum v3 Liquidity Pool.
Motivation
FRAX can use its Lending AMO (similar to Maker’s DAI Direct Deposit Module) to mint protocol controlled FRAX to be lent out on Aave Protocol. Frax Finance has in the past done so in Aave v2 on Ethereum and has already stated on the Aave governance forum an interest in doing so on other deployments once FRAX is added.
The Frax Finance team could deploy a similar Aave Lending AMOs to Aave v3 after FRAX is listed. This will provide Aave users with access to FRAX and present an alternative to the four USD stable coins on Aave v3.
Users are able to borrow FRAX and earn yield across DeFi, such as on Curve Finance and Convex Finance.
Specification
The parameters shown below are the combined recommendation of Gauntlet and Chaos Labs.
Ticker: FRAX
Contract Address: Abritrum: 0x17FC002b466eEc40DaE837Fc4bE5c67993ddBd6F
Chainlink Oracle Address: Arbitrum: 0x0809E3d38d1B4214958faf06D8b1B1a2b73f2ab8
| Parameter | Value |
|---|---|
| Isolation Mode | Yes |
| Borrowable | Yes |
| Collateral Enabled | Yes |
| Supply Cap | 7.00M units |
| Borrow Cap | 5.50M units |
| Debt Ceiling | 1.00M units |
| LTV | 70.00% |
| LT | 75.00% |
| Liquidation Bonus | 6.00% |
| Liquidation Protocol Fee | 10.00% |
| Variable Base | 0.00% |
| Variable Slope 1 | 4.00% |
| Variable Slope 2 | 75.00% |
| Uoptimal | 80.00% |
| Reserve Factor | 10.00% |
| Stable Borrowing | Disabled |
| Flashloanable | Yes |
| Siloed Borrowing | No |
| Borrowed in Isolation | No |
References
Forum Post Payload Implementation Test Pre-Post Payload Diff Deployed Payload Address
The proposal Payload was reviewed by Bored Ghost Developing.
Disclaimer
The author, TokenLogic, receives payment indirectly from Aave Grant DAO via Butter as part of the Incentivised Delegate Campaign. TokenLogic is a delegate within Aave community.
Delegate: 0xA06c2e5BB33cd6718b08EC9335081Cbba62861f7
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
A calldata-vs-description analysis is not generated yet. Review the decoded actions →
04Actions
- Target
- 0xd1b3…cfa3
- Value
- 0 wei
- Function
- execute(address)
- Arguments
{ "0": "0x449E1B11BF74D57972D2d2CF057b337b203490C4" }- Calldata
05Tally
Summed from votes
06Voters
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07Forum
No forum thread is confidently linked to this proposal.
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