Frax Finance

Link to Discussion thread: https://gov.frax.finance/t/fip-44-hop-amo-frax-expansion/824

Summary

Following FIP-44 that created the Hop AMO, the Frax and Hop teams have been working together to integrate FRAX on Hop. This proposal will authorize Frax comptrollers to deploy up to $50m of FRAX liquidity at their discretion once FRAX is live on Hop.

Background and Motivation

The previous proposal for the Hop AMO laid the groundwork for FRAX to be onboarded to Hop. Ideally this will occur in the coming weeks. In order to onboard FRAX, Frax will need to run a bonder to provide liquidity for FRAX transactions. This proposal will fund the bonder, which will be maintained by Frax comptrollers and earn fees for the Frax protocol. Frax can also seed liquidity in FRAX AMM pools on Hop. Frax will have access to all funds deployed and be able to increase or decrease funding at the discretion of the comptrollers. The end goal is to make FRAX the most attractive asset to use on L2 and the best option to bridge between L1<>L2 and L2<>L2.

With regards to the size of the proposal, the goal of the proposal is to give comptrollers the ability to provide enough liquidity to make FRAX a compelling option while also generating revenue for the protocol. The deployment of liquidity is at the discretion of the comptrollers. I expect that it will be scaled into over time.

Proposal

Authorize up to $50m FRAX liquidity to be deployed on Hop at the discretion of protocol comptrollers.

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For: Authorize up to $50m of FRAX liquidity for use in the Hop AMO

Against: Do nothing