[FIP-113] Integrate UniV3staker and add gauge for UniV3 FXS/FRAX

Governance Proposals Gauges
1

Author

Samuel McCulloch

Proposal

Integrate UniV3staker and add gauge for UniV3 FXS/FRAX

Background & Motivation

Adding gauges for Uniswap V3 FXS/FRAX positions

Abstract

Uni V3 LP offer higher capital efficiency and ability for market makers to provide tight markets for traders.

Currently there is 3.3m liquidity for the FXS/FRAX LP on Uniswap V3. This is POL liquidity provided by the team. It is used as the price for Coingecko and other aggregators. Additionally its used to provide prices to Chainlink.

Fraxswap is important because it allows for TWAMM orders. Adding UniV3 LP incentives will improve arbitragers ability to fill those orders and keep markets tight.

Adding gauges for these two pools will require addition of UniV3Staker (GitHub - Uniswap/v3-staker: Canonical liquidity mining contract for Uniswap V3). This will allow the protocol to pay out gauge rewards only to stakers who are in range.

Because of the need to rebalance and rotate on Uni V3 LP, locking bonuses should not be added. LPs should be able to unstake and adjust positions as needed.

Voting

For: Integrate UniV3staker and add gauge for UniV3 FXS/FRAX

Against: Do nothing.

3 Likes
2

I think the more gauges the better so a generally support this. I wonder if we could get FXS on PALM though which was a tool just announced by Arrakis for MM on Univ3. I think the key difference here is that we would be able to lock liquidity which would be better for FRAX overall. Arrakis V2 & Arrakis PALM Are Coming- Last Genesis House Spots Lā€¦ ā€” Arrakis Finance

1 Like
3

My main concern here is that your are forcing everyone to the following

  1. liquidity according to PALM, not personal choices
  2. forced increased smart contract risk by only gauging PALM
  3. loss of fees to PALM for services.
4

This proposal is up for voting here: Snapshot

5

I like the locking of liquidity much better. This could potentially be: Stake the UniV3 nft to arrakis, let it handle the rebalancing, and then deposit the returned ERC20 for that arrakis position to the gauge. Or have functions within the staker/locking contract to have owner manage the positions accordingly?

1 Like