With the introduction of Temple’s STAX product and Convex entering the veFXS wars, Temple now has a vault with Convex Finance and utilizes Convex’s veFXS to get boosted FXS rewards. However, preConvex LP can’t migrate to this new vault, which means that STAX now has a stash of LP that’s boosted by Convex and a stash that is not.
The Templedao team has requested to allow preConvex LP’s to be migrated over.
I propose that we unlock the Temple/Frax LP pair to allow for migration. Doing so will allow Temple/Frax LP providers to move over to STAX and earn higher rewards by taking advantage of Templedao’s Convex vault.
this is the best option for both temple/stax/frax
the current’t frax pool in it’s current form simply ain’t what the temple team wanted people to stake in (as by their statements in discord)
the focus of the temple/frax partnership / support should be towards STAX
In the first place am I against the unlocking of the pool, because the Temple-FRAX pool is providing a lot of valuable locked liquidity that is useful for the Frax protocol to protect the FRAX peg.
Secondly, stakers that locked their liquidity for 3 years, earned more than 100% APY, that was 3x what you would get if you would lock for just a short time. Unlocking now would be very unfair to those who were more careful and locked for a shorter time.
I agree with the points you made in general, however, this is a unique situation. The argument here is about the introduction of a new product by the Temple team, that is STAX, which wasn’t available when the pool was added to the gauge, and as the author mentioned in telegram, Temple’s team encourages this migration as well. Also, TempleDao significantly changed their approach by the introduction of Temple ascend, which changes the floor price of $TEMPLE from hard to soft.
the unlock would be to migrate to stax (which has the same effect)
also currently it only locks 10m frax this does pretty much nothing for the frax peg
while I understand the view of it being unfair for shorter lockers
this pool itself is deprecated by their new product / their team
in this case when the overall situation changes so much from day 1 i think it’s fair
also, this should be taken into account for all future pools
as locking for long term is fine if the pool is supported the entire time
but not if the pool is deprecated/replaced
for this reason, we are also switching to 1 year max locks to be certain these kinds of situations don’t happen again
This is not a unique situation at all. Frax offered a gauge for the FRAX-Temple LP. The AMM is still functional, Temple is still alive and kicking. I do not see a reason to kill this gauge or allow any unlocks.
The Stax product that Temple build on top of this gauge also locks their LP in this gauge for the max duration. That is why they get the higher APY. Unlocking/killing this gauge will also kill their product.
If you are max locked in this pool, the best strategy would be to lock FXS in veFXS. That will boost your returns and will also allow you to vote for the Temple pool to increase the size of the gauge.
I do not believe most who are currently locked would migrate to Stax after we unlock the pool. Many will just sell the Temple & FRAX what is obviously bad for the FRAX peg.
The pool is not deprecated/replaced at all. Temple just build a new product on top of it. Killing the pool, would also kill their product.
we can’t predict how many will simply leave and not migrate (migrate is lower risk than 3y lock as you can sell ur xlp for lp currently at no loss)
but the part of the frax peg being in trouble is very wrong
again it’s only 10m and there’s also zero evidence someone would exit the entire frax ecosystem
the pool is definitly deprecated as they have also stated themself
their product is suposed to be used
and again this proposal is to unlock not kill the pool
Don’t see how this is in anyway a threat to depeg. You’re assuming the ones that max locked want to get out of frax eco completely, which I don’t believe since they locked for 3y in the first place. Also, even if they were to all leave the entire system, it’s not an amount that would effect the peg
also the temple/stax team wishes for this migration
so i’m sure they are confident some will move and are not worried about a couple of leavers (again apy would go up)
and the frax peg has zero danger from 5-10m unlocking litterly zero
I do not think you understand how the Stax product works. They can offer a higher APY because they lock for the max duration. That is the product. If we unlock the pool then their entire product makes no sense anymore.