[CAP] Whitelist FRAX+crvUSD for the crvUSD Omnipool

Proposals
#1

The crvUSD Omnipool has now been live for roughly 1 week. With over $27m in TVL, the crvUSD Omnipool is currently allocating liquidity across 4 whitelisted Curve pools:

  • USDT+crvUSD
  • USDC+crvUSD
  • TUSD+crvUSD
  • USDP+crvUSD

Since then, crvUSD liquidity has continued to expand with the addition of a FRAX pair. With FRAX+crvUSD now live on Convex, it would be an appropriate time to hold a Curve Amendment Proposal to whitelist it to receive crvUSD Omnipool liquidity.

This proposal will be pushed to Snapshot two days from now to be held to a vote. If the vote is to pass, FRAX+crvUSD will be included in the next crvUSD Omnipool LAV.

2 Likes
#2

Bad idea. Frax heavily correlated to USDC during depeg events, yet Frax is a lending platform and these money markets are the #1 type of exploited protocols in defi. So with no diversification risk and general smart contract risk, why bother? The Frax pools don’t have some supercharged yield, they expose the user unnecessarily to a lending platform (yuck!), and have ZERO diversification benefits.

Why is Frax even a part of any Omnipool conversation? Stop the madness immediately.