Frax Finance

Authors

Jason Ma (Axelar)

Summary

Add axlUSDC-FRAXBP Curve pool on Arbitrum to the FXS gauge controller.

Match $5k per month worth of bribes towards this pool 1:1 with Axelar Foundation voting through four voting cycles (~2 months).

Axelar to fully support axlUSDC and Frax through the full product suite.

Assess success over time and potentially extend this relationship to include further incentives per user demand and extend support to FPI and FXS.

Background and Motivation

Axelar delivers secure cross-chain communication for Web3. Our infrastructure enables dApp users to interact with any asset or application, on any chain, with one click. Axelar goes far beyond sending wrapped assets with General Message Passing, which carries any payload securely cross-chain. Applications can call any function on any connected chain and deliver a one-click experience for users on any other connected chain. This is a new kind of dApp development that puts users first and lets developers build on the platform best suited to their use case.

axlUSDC is Axelar’s bridged version of Ethereum USDC, for every axlUSDC, there is one USDC locked on Ethereum. axlUSDC functions as Axelar’s routing asset across the 30 chains supported by the Axelar Network. This axlUSDC<>USDC pool will power hundreds of cross-chain applications built on Axelar’s decentralized cross-chain infrastructure, including native-to-native cross-chain swaps.

Axelar has seeded the initial liquidity for the axlUSDC<>FRAXBP pool on Arbitrum and would like to grow the volume and TVL of this pool through the additional incentives offered via bribes. The Frax team has offered to contribute to the bribes of this pool. We envisage this to be an attractive offering given the fact that axlUSDC pools are already earning at the time of writing between 10-20% natively on other chains. axlUSDC pools on Avalanche and Polygon are consistently one of the pools with the highest volumes in the last 6 months.

Section 0: Pool Deployment

The Frax team will aid Axelar to ensure that the prospective axlUSDC<>FRAXBP pool can be deployed properly across the full CRV/CVX/FXS gauge system, including proposal authorship and utilization of voting weight.

Section 1: Incentive Matching Budget

The Frax team will match $5k per month worth of bribes towards this pool 1:1 with Axelar Foundation voting through four voting cycles (~2 months).

All bribes will go towards incentivizing the axlUSDC-FRAXBP pool on Arbitrum.

This matching program will commence on the first voting cycle that sees axlUSDC-FRAXBP properly integrated into Curve/Convex/Frax gauges.

Section 2: Frax integration throughout Axelar

Currently, FRAX is supported on Axelar and Squid Router

Summary

Prioritize FRAX throughout the Axelar ecosystem, giving the users the opportunity to easily transfer assets across chains. By establishing this partnership, FRAX, and Axelar aim to foster liquidity provision, cross-chain interoperability, and the overall growth of the FRAX ecosystem. Together, we can create a more connected and efficient DeFi landscape, benefiting users, LPs, and the broader cryptocurrency community.

Frax to match $5,000 worth of monthly bribes with Axelar for four voting cycles.

Frax ecosystem participants benefit in a number of ways:

• New yield farming opportunities on axlUSDC + FRAX
• Increased demand and potential supply expansion on FRAX, driving greater revenue back to Frax holders
• Routing of Frax assets throughout the broader DeFi ecosystem, driving relevant metrics like liquidity, borrow activity, trading volume, and so on

Govenrance Note: This voting is only for the second section of this proposal.

Votes

• For: Match $5k per month worth of bribes towards axlUSDC-FRAXBP Curve pool on Arbitrum through four voting cycles (~2 months).

• Against: Do nothing.