Frax Finance

Authors

Jason Huan

Summary

Co-incentivize FRAX-OHM Uni pool with OlympusDAO and create a FRAX=OHM bond with FRAX

Background

OlympusDAO manages OHM, a floating algorithmic currency which has gained traction as a non-pegged stablecoin. OlympusDAO currently uses DAI as their reserve asset, and are open to partnering with Frax to include FRAX as a reserve asset in an incentivized FRAX-OHM pool. The OlympusDAO community currently has an active vote detailing their proposal here.

Purpose

The purpose of the OlympusDAO partnership is to foster cooperation between both communities as algorithmic stablecoins grow into defi as a whole.

The partnership would go as follows

FRAX-OHM pair

Incentivize FRAX-OHM pair on Uniswap.

OHM Bond

Purchase OHM in a bond with FRAX.

If adopted*, this proposal seeks to:

1. Incentivize the FRAX-OHM pair with 2000 FXS/day
2. Create a $1m FRAX-OHM LP bond held by the protocol by purchasing $500k worth of OHM tokens through newly minted FRAX in an AMO controller, depositing it as liquidity against 500k FRAX on Uniswap

This benefits Frax as a whole by:

• Establishing a partnership with OlympusDAO

Note

This is a re-vote from the previous proposal with the same details, updated with a fixed strategy to allow veFXS voters to vote.