Summary

Convert 300 WETH held by the Gearbox DAO treasury into sfrxETH to generate staking yield and strengthen alignment between Gearbox and Frax.

Context

Frax’s FIP-450 proposes adding the Gearbox Institutional RWA Market to the sfrxUSD strategy whitelist with a $5 million allocation cap.

The proposal also describes a Gearbox alignment commitment involving converting ETH into sfrxETH.

Motivation

The ETH currently held by the treasury does not generate staking yield. sfrxETH is Frax’s yield-bearing staked ETH token and accrues rewards generated by the Frax validator system.

Converting the treasury position would:

• Generate additional yield on otherwise idle ETH.
• Maintain