I support the idea of the protocol beginning to amass FXS/ETH liquidity. A fundamental part of the Frax mechanisms relies on FXS being able to maintain its value, one of the best ways to do it is by owning its own liquidity, and ETH is probably the best asset to pair it to.
Some time ago i made a related proposal, where i proposed to sell bonds of the protocol-owned convex shares. I think it still is an option, but given the current situation of protocols minting assets out of thin air to the detriment of their users, i think we would have to be very careful and analyze if it can have negative impact to the frax supporters. The other option is to sell FXS bonds through Olympus Pro, the program is still running, currntly has amased $1.6M, I think that if we choose this way, we should set a target of how much we are aiming to collect and ask ourselves why we aren’t collecting as much through Olympus and how could we do it.
Regarding adding a gauge for a FXS/ETH pair, maybe some users really like FXS, really like ETH, want an exposure to both, and i’d support rewarding them with liquidity rewards, since they are contributing to the protocol robustness.