FIP-16: veFXS Gauges

Governance Proposals Gauges
1

Summary:

Activate veFXS gauges to supplant the Uni v2 FRAX-USDC farming pair, redirecting the FXS rewards on that pair to the veFXS gauge system which can be voted on by veFXS holders, similar to Curve’s gauges (https://dao.curve.fi/gaugeweight)

Background & Motivation:

The veFXS system is currently returning 55% APR on single-asset FXS stakers (at a rate of 1 FXS locked for 4 years), with profits coming from the FXS1559 AMO which currently buys back FXS from the market using interest earned from lending out collateral to Aave, Compound, and Yearn.

The current FXS farming system is incentivizng Uni v2 FRAX-USDC pair with roughly 16,400 FXS/day each, taken from the 60% farming allocation of the FXS distribution. By adding gauges, veFXS holders are able to vote on where the FXS inflation will go, directly proportional to the veFXS vote amount. Additionally, the gauge system will allow for new incentivized asset pairs against FRAX to be added in through governance.

The gauge activation will start with the Uni v2 FRAX-USDC emissions and move them to the first gauge, Uni v3 FRAX-USDC. All locked stakes in the new gauge system and subsequent farming systems will remain locked and not be unlocked. This proposal only affects the Uni v2 FRAX-USDC pair and any new farming partnerships.

For: Activate veFXS Gauges

Against: Do nothing

4 Likes
2

please give more information about this bit. would this mean people would never be able to unlock there LP staking and recover the underlying assets?

3

No, he means that the locks will work within the system. So for example, if you lock for 6 months in the FRAX-USDC Uni V3 gauge, you are accepting the risk that the gauge weight will change every week. You get the lock boost no matter what so no one should be expecting to get unlocked any time the reward rate changes in a gauge system. The LP will obviously be unlocked when its own lock time expires. But what Jason was saying is that the reward rates will be set by the gauge system so it is part of the rules that people know ahead of time so they should not expect to be unlocked by governance/manually.

4

ok, so they wont remain locked and can be unlocked, but only when the staking time has expired.

5

Yes, that is correct.

6

cool, i was starting to get a $core vibe, and thats a red flag to me.

i would like to see all investors with locked FXS get a vote on the gauge (fxs/frax locked LP holders) , but generally speaking i agree with this idea.

1 Like
7

Fully supportive of this - let’s do it!

1 Like