Based on our prior analysis of the initial ARFC post, we are in favor of onboarding FRAX on the Aave V3 Lido instance.
Currently, $164.45K worth of FRAX is being borrowed against wstETH on Ethereum-Main, but we anticipate greater demand in this instance since USDT — the second most borrowed stablecoin against wstETH — is not available.
Outlined below are the parameters we proposed, as included in the proposal:
| Parameter | FRAX |
|---|---|
| Chain-Instance | Ethereum-Lido |
| Isolation Mode | No |
| Borrowable | Yes |
| Collateral Enabled | No |
| Supply Cap | 20,000,000 |
| Borrow Cap | 18,000,000 |
| Debt Ceiling | - |
| LTV | - |
| LT | - |
| Liquidation Bonus | - |
| Liquidation Protocol Fee | - |
| Variable Base | 0% |
| Variable Slope1 | 5.5% |
| Variable Slope2 | 75% |
| Uoptimal | 90% |
| Reserve Factor | 20% |
| Stable Borrowing | Disabled |
| Flashloanable | Yes |
| Siloed Borrowing | Disabled |
| Borrowable in Isolation | No |
| E-Mode Category | - |