Summary: Seek authority from the community to whitelist Frax Finance for staking assets and LPs.
Background: As Ohmies probably know, Frax is a fractional reserve backed algorithmic stablecoin. Frax Finance has been a close partner for a long time, and Olympus has recently conducted a DAO swap with OIP-53 https://forum.olympusdao.finance/d/506-oip-53-execute-dao-swap-with-frax-finance/22.
Frax rewards its native governance token FXS to liquidity pools which are whitelisted by FIP vote and then proportionally rewarded per Frax gauge voting see: https://app.frax.finance/gauge.
Motivation: Whitelisting Frax Finance will allow Olympus to accrue FXS rewards from any whitelisted liquidity pool with rewards directed by gauge votes. Currently Olympus has vote locked $7mm FXS giving it substantial gauge voting power.
Description from docs.frax.finance: Frax is the first fractional-algorithmic stablecoin protocol. Frax is open-source, permissionless, and entirely on-chain – currently implemented on Ethereum and other chains. The end goal of the Frax protocol is to provide a highly scalable, decentralized, algorithmic money in place of fixed-supply digital assets like BTC.
Risks: The staking contracts are used to disperse FXS rewards and do not contain any complex logic that would generally be associated with medium or high risks.
Protocol Analysis: Using a risk analysis framework developed by the DAO, the Policy and Partnerships teams have attempted to score various protocols based on some subjective and non-subjective data. Frax scored well in this regard. The subjective values were derived from a combination of quantitative and qualitative.
The following risk analysis shows the outcome of the Treasury Team's holistic assessment of the proposed platform and intended strategies. Lastly, one final reminder that this score is an average that was derived from an generalized assessment of the platform which includes TVL, audits, protocol age/risk, targeted investment and strategy type.
Final Risk Analysis_Frax Finance