Add FXS to Ethereum V3
01Summary
Proposal to add FXS (Frax Shares Token) as a new asset to Ethereum Aave V3 with specified risk parameters including 800k supply cap, 500k borrow cap, 35% LTV, and $4M debt ceiling. Supported by Gauntlet analysis.
- Type
- protocol addition
Key changes
- Add FXS token to Aave V3 Ethereum as a new collateral asset with isolation mode enabled(high)
- Set supply cap at 800,000 FXS and borrow cap at 500,000 FXS with $4M debt ceiling(high)
- Configure LTV at 35%, liquidation threshold at 45%, and liquidation bonus at 10%(high)
- Enable FXS as both borrowable and flashloanable asset with variable borrow rates (base 0%, slope1 9%, slope2 300%)(medium)
- Set reserve factor at 20% with Chainlink oracle price feed integration(medium)
Generated by Kvorum
02Description
Simple Summary
This publication presents the community with an opportunity to add FXS to the Ethereum Aave v3 Liquidity Pool.
Motivation
Frax Finance is a DeFi protocol that offers a stable protocol for issuing FRAX/FPI/frxETH and subprotocols such as Fraxlend, Fraxswap, and Fraxferry. The Frax Shares Token ($FXS) serves a dual role as both a governance token and a utility token.
The addition of FXS to Aave V3 represents the introduction of a new asset, encouraging the transition from Aave V2 to V3 and diversifying collateral assets for GHO. Furthermore, Aave DAO can utilize FXS obtained from the pool to kickstart the adoption of GHO and/or new aTokens.
Specification
The parameters shown below are supported by @Gauntlet Ticker: FXS Contract Adress: 0x3432B6A60D23Ca0dFCa7761B7ab56459D9C964D0 Chainlink Oracle: 0x6Ebc52C8C1089be9eB3945C4350B68B8E4C2233f
| Parameter | Recommendation (Gauntlet) |
|---|---|
| Isolation Mode | YES |
| Borrowable | YES |
| Collateral Enabled | YES |
| Supply Cap (FXS) | 800,000 |
| Borrow Cap (FXS) | 500,000 |
| Debt Ceiling | $4M |
| LTV | 35.00% |
| LT | 45.00% |
| Liquidation Bonus | 10.00% |
| Liquidation Protocol Fee | 10.00% |
| Reserve Factor | 20.00% |
| Base Variable Borrow Rate | 0.00% |
| Variable Slope 1 | 9.00% |
| Variable Slope 2 | 300.00% |
| Uoptimal | 45.00% |
| Stable Borrowing | NO |
| Stable Slope1 | 13.00% |
| Stable Slope2 | 300.00% |
| Base Stable Rate Offset | 3.00% |
| Stable Rate Excess Offset | 5.00% |
| Optimal Stable To Total Debt Ratio | 20.00% |
| Flahloanable | YES |
| Siloed Borrowing | NO |
| Borrowable in Isolation | NO |
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The proposal's on-chain footprint is a single generic call to the Aave governance v3 'forwardPayloadForExecution' function, which merely dispatches a pre-built payload (identified by id 1) to an executor contract for execution. The actual reserve-listing logic for FXS (supply/borrow caps, LTV, liquidation parameters, interest rate curve, etc.) lives inside that forwarded payload contract and is not itself decoded in the provided calldata. This means I cannot directly verify the specific numeric parameters (35% LTV, 45% LT, 800k supply cap, etc.) against on-chain calldata — they are asserted only in the payload's source code referenced in the description, not visible here. However, the high-level action (forwarding a payload to add FXS to the Aave V3 Ethereum pool) is fully consistent with the description's stated purpose, and there is nothing in the decoded action that contradicts or extends beyond what the description claims (e.g., no unrelated transfers, role grants, or upgrades). Because the decoded calldata is opaque about the granular parameters, my confidence in a detailed parameter-by-parameter comparison is low, but at the level of what can be verified, the action is consistent with the description's intent.
Generated by Kvorum
04Actions
- Target
- 0x9aee…2bc7
- Value
- 0 wei
- Function
- forwardPayloadForExecution((uint256,uint8,address,uint40))
- Arguments
{ "0": [ "1", "1", "0xdAbad81aF85554E9ae636395611C58F7eC1aAEc5", "18" ] }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| 320x329c…3ed4 | For | 116.5K | 23.33% | — | 3y ago |
| 070x0703…961b | For | 86.8K | 17.37% | — | 3y ago |
| 130x13bd…8548 | For | 61.3K | 12.27% | — | 3y ago |
| 2C0x2cc1…4df1 | For | 43.7K | 8.74% | — | 3y ago |
| B90xb933…8dd1 | For | 42.4K | 8.49% | — | 3y ago |
| EA0xea17…6676 | For | 38.7K | 7.76% | — | 3y ago |
| EZezr3al.eth0x8659…7d0e | For | 38K | 7.62% | — | 3y ago |
| 570x57ab…2922 | For | 27.3K | 5.47% | — | 3y ago |
| 870x8787…ea52 | For | 21.1K | 4.22% | — | 3y ago |
| E40xe459…e666 | For | 20K | 4.00% | — | 3y ago |
| 180x1855…98ba | For | 3.6K | 0.72% | — | 3y ago |
| DF0xdf06…4977 | For | 27.3 | 0.01% | — | 3y ago |
| EC0xecc2…6ac9 | For | 20 | 0.00% | — | 3y ago |
| E00xe099…d4e0 | For | 1.3 | 0.00% | — | 3y ago |
| 740x74a2…c125 | For | 1 | 0.00% | — | 3y ago |
| 040x047d…7178 | For | 1 | 0.00% | — | 3y ago |
| 8A0x8a77…d2a1 | For | 0.8 | 0.00% | — | 3y ago |
| F70xf736…ad98 | For | 0.6 | 0.00% | — | 3y ago |
| 820x82ea…1fcc | For | 0.5 | 0.00% | — | 3y ago |
| F10xf152…5710 | For | 0.2 | 0.00% | — | 3y ago |
| CD0xcdb0…7a8b | For | 0.2 | 0.00% | — | 3y ago |
| B00xb068…ec63 | For | 0.2 | 0.00% | — | 3y ago |
| 400x407d…693e | For | 0.2 | 0.00% | — | 3y ago |
| 250x2506…29ce | For | 0.2 | 0.00% | — | 3y ago |
| 450x4569…d88c | For | 0.1 | 0.00% | — | 3y ago |
| EF0xef54…a713 | For | 0.1 | 0.00% | — | 3y ago |
| 530x5398…4555 | For | 0.1 | 0.00% | — | 3y ago |
| A00xa0a9…3c1b | For | 0.1 | 0.00% | — | 3y ago |
| A40xa466…94ee | For | 0.1 | 0.00% | — | 3y ago |
| 0A0x0a1f…a125 | For | 0.1 | 0.00% | — | 3y ago |
| 1A0x1ae3…4839 | For | 0 | 0.00% | — | 3y ago |
| D60xd66f…eb75 | For | 0 | 0.00% | — | 3y ago |
| D60xd62c…8d30 | For | 0 | 0.00% | — | 3y ago |
| BF0xbf35…156c | For | 0 | 0.00% | — | 3y ago |
07Forum
No forum thread is confidently linked to this proposal.
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