Summary:
This proposal seeks to whitelist the Frax Silo on the Sturdy UI on X Layer. X Layer is OKX’s zkEVM Layer 2 network built on Ethereum, powered by Polygon CDK.
Objective:
Enable users to borrow FRAX using sfrxETH collateral or gain leveraged long exposure to sfrxETH.
Background:
Frax Protocol issues innovative, decentralized stablecoins and contains subprotocols to support them. The Frax Protocol currently issues 3 stablecoins: FRAX, FPI, and frxETH. The Frax Protocol also has 3 subprotocols within it that integrate its stablecoins: Fraxlend, Fraxswap, and Fraxferry.
Incentives:
Frax will bootstrap and incentivise the Silo with $FXS rewards to kickstart the market and Sturdy Finance to match with $STURDY incentives.
Silo:
Lending/borrowing asset: FRAX
Collateral asset: sfrxETH
LTV: TBD (Open to discussion in the forum)
Liquidation fee: TBD (Open to discussion in the forum)
Oracle: API3
The sfrxETH/FRAX feed can be derived from the below feeds as frxETH is pegged to and redeemable for ETH
sfrxETH/frxETH : 0x726903CBF82c54B20583858576a5049d3A1077d7
ETH/USD: 0x7501f1Aa71d409D1D4732b98178beE5Ad83d467B
FRAX/USD: 0xAA7710e07C1f60483625867a43B91914137a4DA2
Aggregator
Network: X Layer Mainnet
Lending asset: FRAX
Initial whitelisted silos: sfrxETH
About the author:
The author is a contributor to X Layer and is not a representative of the FRAX team.