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Title: [TEMP CHECK] Add sFRAX to Ethereum V3

Author: @0xlide - @SaucyBlock - Aave Chan Initiative

Created: 2023-12-14

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Summary

This publication presents the community an opportunity to add sFRAX to the Ethereum Aave V3 Liquidity Pool.

Motivation

Staked FRAX (sFRAX) is an ERC-4626 staking vault that distributes a portion of the Frax Protocol yield. sFRAX APY attempts to roughly track the interest on reserve balances (IORB) rate of the United States Federal Reserve.

Integrating sFRAX as collateral asset in the Aave V3 Ethereum Pool has the potential to create new demand for borrowable assets on Aave V3, such as stablecoins and FXS.

Specification

Ticker: sFRAX Contract Adress: 0xA663B02CF0a4b149d2aD41910CB81e23e1c41c32 Chainlink Oracle: 0xB9E1E3A9feFf48998E45Fa90847ed4D467E8BcfD

Proposed risk parameters will be shared at the potential ARFC stage of this proposal.

Next Steps:

1. Gather the AAVE community’s feedback on this proposal.
2. If consensus is reached, escalate this proposal to TEMP CHECK snapshot stage.
3. If TEMP CHECK snapshot outcome is yes, escalate to ARFC.
4. If consensus on ARFC is reached with appropriate technical details added, then escalate to ARFC snapshot.
5. If ARFC snapshot approved, then escalate to AIP Stage.

Disclaimer

This TEMP CHECK is powered by ACI Skywards. The Aave Chan Initiative has not received any form of compensation for creating this proposal.

Copyright

Copyright and related rights waived via CC0 .