Authors

Frax Core Team

Summary

This proposal seeks to update the existing allocation of FXS on Symbiotic by increasing the staking amount from the previously approved 1 million FXS to a maximum of 5 million FXS. Additionally, it proposes allocating up to $5 million worth of sfrxETH to Symbiotic, ensuring sufficient cap space to maximize the potential of the opportunity.

Background and Motivation

In FIP 407, Frax Finance approved the allocation of 1 million FXS to Symbiotic for staking. Now, with the strategic importance of Symbiotic’s restaking protocol and its ability to support decentralized services, Frax Finance intends to enhance this allocation to fully capture the yield potential and provide greater flexibility through additional assets like sfrxETH.

This proposal is aimed at increasing the overall allocation of assets on Symbiotic, ensuring that Frax Finance can maximize both yield generation and security provision by leveraging its FXS and sfrxETH holdings.

Proposal Details

This proposal seeks approval to:

• Increase the FXS allocation for staking on Symbiotic from 1 million FXS to a maximum of 5 million FXS.
• Allocate up to $5 million worth of sfrxETH for staking on Symbiotic.
• Adjustments to the allocation of assets will be made based on market conditions, yield performance, and Symbiotic’s ecosystem growth.

Voting

• For: Approve the increase of FXS allocation to a maximum of 5 million and allocate up to $5 million worth of sfrxETH for staking on Symbiotic.
• Against: Do nothing and maintain the current 1 million FXS allocation.