Frax Finance

Link to Discussion Thread: https://gov.frax.finance/t/frax-lend-flare/1146

Summary

To establish a partnership between Frax Finance and Lend Flare. This proposal could potential help Frax investors to unlock their assets without losing any interest and maximize their yield.

Background

Lend Flare is a decentralized borrowing platform on Ethereum blockchain that allows Curve LP holders (the borrowers) to draw fixed-rate, fixed term and high LTV loans against Curve LP used as collateral, with no concerns for assets being liquidated due to price fluctuation. Loans are paid out through Lend Flare from Compound platform. Liquidity providers (the lenders) who deposit loan liquidity through Lend Flare on Compound platform will receive one of the highest interest rate compared to other current lending platforms.

Motivation

Frax has recently become one of the most influential stable coin in the market. Currently around 2876m sitting in Curve gauge. With Lend Flare, frax3crv holders can collacterize their assets in Lend Flare and borrow other stables against it without losing any Convex yield. With these borrowed stables, LP holders can reinvest in Curve gauge and further maximize your interest. Loops start. For details

With upcoming 4 pools, Lend Flare could help those who originally hold 3crv base and metapool LPs and further participating in 4 pool investment. Another loop.

Future Partnership Plan

1. Adopt Frax as Lend Flare supplied asset. In other words, you can borrow Frax against corresponded Curve LP.
2. A FRAX DAO <> Lend Flare DAO swap of FXS<>LFT and permanently lock each other’s tokens to align incentives.
3. For Lend Flare v2, we will create a synthetic assets LFUSD and pair with Frax in Curve which further create loop for our loan suppliers.

Reference

Lend Flare Official Website: https://lendflare.finance Lend Flare Docs: https://en-docs.lendflare.finance/ Lend Flare Audit Report: https://www.certik.com/projects/lend-flare

For: Lend Flare is a low risk, high LTV lending platform which could serve Frax community and help Frax grow.

Against: Lend Flare is still young. We have confidence that one day Lend Flare will become one of the most trustable and influencial partners for Frax.

Author

Lend Flare team