[SIPS-077] Upcoming Proposal to Add Fraxlend Collateral and Debt Support to RYBTC
The purpose of this forum post is to discuss the upcoming proposal to add the Fraxlend Collateral and Debt adaptors to RYBTC.
This would enable RYBTC to borrow FRAX against BTC on Fraxlend. RYBTC could then deposit that FRAX into the Fraximal Cellar to earn yield.
The opportunity lies in the fact that FRAX can be borrowed against WBTC at a rate of ~1.5% at the time of writing while Fraximal is yielding >7% on FRAX.
The Cellar would manage leverage by imposing limitations on health factor, as well as strategist monitoring.
We believe that RYBTC is currently the most compelling WBTC yield opportunity, and that sustaining this this requires consistently adding new yield opportunities.
This post will be updated in the coming days with the deployment of the Fraxlend Collateral and Debt adaptor, as well links to the relevant audit.
If the proposal is accepted, a Steward update will enable the strategist to add the Fraxlend Collateral and Debt adaptor to RYBTC.