title: Add FRAX Ethereum Aave v3 discussions: https://governance.aave.com/t/arfc-add-frax-to-aave-v3-ethereum/13051 author: Flipside & TokenLogic

Simple Summary

This publication presents the community an opportunity to add FRAX to the Ethereum v3 Liquidity Pool.

Motivation

FRAX can use its Lending AMO (similar to Maker’s DAI Direct Deposit Module) to mint protocol controlled FRAX to be lent out on Aave Protocol. Frax Finance has in the past done so in Aave v2 on Ethereum and has already stated on the Aave governance forum an interest in doing so on other deployments once FRAX is added.

The Frax Finance team could deploy a similar Aave Lending AMOs to Aave v3 after FRAX is listed. This will provide Aave users with access to FRAX and present an alternative to the four USD stable coins on Aave v3.

Users are able to borrow FRAX and earn yield across DeFi, such as on Curve Finance and Convex Finance.

Specification

The parameters shown below are the combined recommendation of Gauntlet and Chaos Labs.

Ticker: FRAX

Contract Address: Ethereum: 0x853d955aCEf822Db058eb8505911ED77F175b99e

Oracle Address: Ethereum: 0xB9E1E3A9feFf48998E45Fa90847ed4D467E8BcfD

Parameter	Value
Isolation Mode	Yes
Borrowable	Yes
Collateral Enabled	Yes
Supply Cap	15.00M units
Borrow Cap	12.00M units
Debt Ceiling	10.00M units
LTV	70.00%
LT	75.00%
Liquidation Bonus	6.00%
Liquidation Protocol Fee	10.00%
Variable Base	0.00%
Variable Slope 1	4.00%
Variable Slope 2	75.00%
Uoptimal	80.00%
Reserve Factor	10.00%
Stable Borrowing	Disabled
Flashloanable	Yes
Siloed Borrowing	No
Borrowed in Isolation	No

References

Forum Post Payload Implementation Test Pre-Post Payload Diff Deployed Payload Address

The proposal Payload was reviewed by Bored Ghost Developing.

Disclaimer

The author, TokenLogic, receives payment indirectly from Aave Grant DAO via Butter as part of the Incentivised Delegate Campaign. TokenLogic is a delegate within Aave community.

Delegate: 0xA06c2e5BB33cd6718b08EC9335081Cbba62861f7

Add FRAX Ethereum Aave v3

Votes

Proposal