FIP-17 FRAX-SUSHI Sushiswap Gauge

Hey everyone,

In the next few weeks, we’d like to begin populating our veFXS gauges with 1 gauge per week to get a healthy distribution of liquidity.

Summary:

Add a FRAX-SUSHI Sushiswap gauge to veFXS gauges.

Background & Motivation:

Currently we are focusing on Uniswap v3 gauges which is still in focus. But in an effort to diversify our gauge weights and signal that veFXS gauges are not simply for 1 particular type of AMM, I think it would be a great idea to begin with a Sushiswap FRAX-SUSHI gauge. Sushiswap has supported FRAX since its early days by adding us to their Onsen menu back in February. Additionally, they’ve added FRAX pairs on Polygon and their other chain deployments.

Secondly, SUSHI has a predominant amount of liquidity against ETH and almost none against any stablecoin. They essentially use ETH routing to exchange in and out of stablecoins. While this is fine for them, it would be prudent to become their stablecoin of choice by providing a high amount of liquidity directly for SUSHI. Additionally, some Sushi chefs have expressed interest in supporting FRAX further if we get them a gauge. This will also advance our multichain strategy with Sushiswap and could open the door to do cross chain Sushiswap veFXS gauges with them in the future.

Lastly, having gauges on multiple AMMs shows our credible neutrality that veFXS gauges are not ideologically only for Uni v3 pairs. This is important as we seek to win over other protocols to buy into our gauge system. They should understand that we are AMM agnostic.

This proposal does not affect our intent to propose adding of other gauges as planned such as other stable-stable Uni v3 pairs. Anyone in the community and other projects can proposal veFXS gauges on any AMM as long as FRAX and/or FXS are part of the pair. Our normal roadmap of Uni v3 gauges is still occurring as planned in addition to this proposal.

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