The discussion primarily revolves around the proposal by BribeProtocol to add FRAX, a stablecoin issued by Frax, as collateral to the Aave V2 market. FRAX, which has remained pegged to USD since its launch in 2020, is partially backed with on-chain collateral and partially backed algorithmically. The proposed parameters for FRAX as collateral include a Loan-to-Value (LTV) of 50%, a Liquidation Threshold of 60%, and a Liquidation Bonus of 6.5%. The Frax community is active and would likely use Aave to borrow using FRAX as collateral, benefiting Aave through increased users and revenue.

BribeProtocol, a DeFi protocol that incentivizes DAO token holders to govern, has integrated with Aave and is creating an Aave pool where holders of AAVE and stkAAVE can deposit their tokens and earn rewards. Fig endorsed BribeProtocol's mission to boost governance on Aave and asked if their focus was solely on new asset listings, particularly stablecoins. BribeProtocol released a risk assessment for FRAX on Medium, stating that FRAX has earned its spot among collateral-enabled tokens on Aave due to its high market cap and trading volume.

The risk assessment suggests that FRAX would add negligible risk to Aave, except in the case of a black swan event. The community is encouraged to discuss the proposal before moving it to an on-chain vote. PaperImperium asked about the current stage of the discussion and the next steps for the proposal. Eboado noted that the FRAX integration with Aave has been successful but sought clarification on the dependency of the price of FRAX on the Curve system, the current use cases of FRAX, and the relationship between the author of the AIP and the Asset. The discussion is ongoing, with the community actively participating in the deliberation.