The goal of this forum post is to discuss the upcoming Cellar proposal asking Governance to accept the Fraximal strategy.
The most successful strategies on Sommelier have thus far offered best-in-class yields for a specific asset (Real Yield ETH and Real Yield USD).
At the same time, Sommelier’s novel architecture enables the creation of sophisticated vaults that can improve UX for other protocols and communities.
The Fraximal vault is designed to add value to the FRAX community by providing an easy to access optimization layer over the Fraxlend protocol. In particular, the strategy optimally allocates FRAX to the highest yielding Fraxlend pools while also managing risk and liquidity.
The strategy aims to allocate FRAX across several Fraxlend pools simultaneously to capture yields. There is large variability in which FRAX pools are highest yielding, and the decision for how to allocate capital must account for a variety of factors such as impact of new TVL, liquidity risks due to high utilization, etc.
This vault gives FRAX holders a simple to access interface which automates the process of capturing the highest yields on Fraxlend while also improving liquidity in the Fraxlend ecosystem and allocating FRAX to the pools with highest demand.
If approved, the chain will accept signed function calls submitted to the cellar contract from the strategy provider.
Strategy providers: Seven Seas Capital and DeFine Logic Labs
We will update this post with more details in the coming days, including contract deployments and relevant content.