[FIP - 123] Introduce 20% [RageQuit] function for TEMPLE/FRAX gauge

i think that frax should turn the 20% into pure frax as well and they are free to do so

but you could also make it that indeed frax taks 20% but only in Frax (in this case on 100k the ragequit would have to withdraw the lp from uni > send back 50k temple 30k frax

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this also make it 20% more reasonable as there wuld be more slipage costs for the ragequiter now
while frax get’s 20% in pure frax

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another option would be a Buyout option

where you pay in frax upfront to unlock

for 100k LP you pay 20k then you get the ful 100k LP and frax get’s pure frax this would be more easy to implement than the protocol self withdrawing etc

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Earlier discussion around unlocking: Automatically remove gauges that are not voted for - Governance Proposals / Gauges - Frax Finance Governance

TLDR;

The ideal setup would be that stakers get the possibility to rebalance their locked stake. This way stakers can react to risk and drive liquidity in line with gauge voting. If too challenging, I’d opt for an automated unlock process based on the gauge voting system. This way there are clear rules for stakers and protocols and we don’t have to go through a heated governance process for each and every unlock.

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This proposal is up for voting here: Snapshot

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I’d like to quickly summarize the efforts that Temple has made to resolve the issue. Previously we offered to migrate the $10M TVL to STAX at no discount (but shorter lock duration). We also offered to take on the TVL at a 30% illiquidity discount for the full duration which is in line with some of the suggestions here.

TempleDAO would be very supportive of the 20% RageQuit function from FRAX to allow these LP farmers to exit our gauge. After all it is a FRAX contract where the tokens are staked, not a Temple contract. However a few implementation details seem to be missing because it’s unclear to me what FRAX would do with the LP tokens once they are transferred to FRAX.

The 97 cent hard floor for TEMPLE will continue at least for a few more weeks, after which we expect to introduce a soft floor AMO set at 96 or 97 cents. We do not anticipate ever having to lower the floor, although if someone were to try to sell 5mm TEMPLE tokens at any point in time, they’d need to plan accordingly to avoid being hit with high slippage.

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