ALE ERC4626 Integration for sFRAX and st-yETH Markets on FiRM

ALE ERC4626 Integration for sFRAX and st-yETH Markets on FiRM

Proposal Summary:

The proposal aims to integrate the Accelerated Leverage Engine (ALE) into the sFRAX and st-yETH Markets on FiRM. This integration will allow users to leverage or deleverage their positions in a more efficient and cost-effective manner by performing multiple actions in a single transaction. The ALE enables flash minting of DOLA to facilitate the purchase or sale of collateral, thereby streamlining the borrowing and repayment processes while minimizing the risk of undesirable liquidations.

Background:

Currently, leveraging or deleveraging positions in the sFRAX and st-yETH markets on FiRM requires multiple transactions, leading to a suboptimal user experience and increased costs. Additionally, there is a risk of undesirable liquidations associated with performing individual transactions.

Solution:

By integrating the ALE ERC4626 Helper into the sFRAX and st-yETH markets, users will be able to execute multiple actions, including borrowing and repaying DOLA, buying and selling collateral, and managing additional DOLA debt, all within a single transaction. This integration will significantly enhance the efficiency and usability of these markets.

On-Chain Actions:

1 - Set sFrax Market on the ALE
2 - Set styEth Market on the ALE
3 - Set sFrax Market on the ERC4626 Helper
4 - Set styEth Market on the ERC4626 Helper

2 Likes

Great move. That can help bootstrap those market which are important in boosting revenue and diversifying the backing of DOLA.

1 Like