Add a veFXS-enabled FRAX/OHM Uniswap V3 Farm to the gauge. Rewards will be in FXS.
EDIT: FRAX/sOHM has been proposed in the comments below as well
OlympusDAO already holds a large amount of FRAX, and gives yield on FRAX-OHM LP and FRAX bonds. OHMies also have a lot of veFXS already from the previous FRAX/OHM Uniswap V2 farming, and their community is very receptive of FRAX.
Minimal
This seems smart - lots of Ohmies sitting on veFXS stacks
I think this is not a good idea, staking OHM currently earns you 17882.8% APY, so when you provide liquidity in the pair you will forfeit that interest, this means the FXS rewards have to be huge to attract any kind of liquidity. An improvement would be to do FRAX/sOHM, because sOHM does not have the hyperinflation that OHM has.
But I think we should focus our gauges on FRAX/stable pairs. The rewards required to attract capital is much lower than for FRAX/volatile pairs, because there is no IL and the capital is used 100x as efficient, because the liquidity can be concentrated on a small range.
I agree with thinking about an sOHM pair. I think Ohmies and Fraximalists will like that a lot.
The other thing to consider:
Olympus is sitting on a ton of FRAX and DAI in their treasury. We have a FRAX-DAI Uni v3 gauge. Our friends at Olympus already have a good reason to deploy their idle FRAX and DAI in that gauge to earn big FXS rewards and tx fees (which are really high yielding on v3 because of 100x efficiency). If they decide to go into that gauge, we can try to expand our partnership with them and propose this FRAX-sOHM gauge as the next step in our collaboration.
I generally agree with what you’re saying about OHM itself having too high of a yield to create much liquidity, but FRAX-sOHM is a great idea. I also like the Olympus DAO community overall. They are really great.