Proposal to add VST/FraxBP to FXS gauge controller
Curve Pool Address: https://curve.fi/#/arbitrum/pools/factory-v2-72/
Pool / Token: 0x63171ae9a9886e49547dd40adb70f04eaba39d6b
Motivation:
After conversations between the Vesta and the Frax teams, we’ve concluded that migrating the VST-FRAX pool to a VST-FRAXBP Curve pool would benefit both protocols.
VST is minted directly by users by opening a vault and depositing ETH, GMX, DPX, gOHM, and GLP as collateral. The available collaterals make VST one of the most decentralized stablecoins on the market. VST has seen more than 300k in volume consistently in the past 6 months (>2m on some days), making it one of the highest-traded stablecoins on Arbitrum. This volume has benefitted FRAX as well, driving lots of volume to Arbitrum FRAX.
We hope to further our collaboration via migrating the current VST-FRAX pool to a new VST-FRAXBP pool. Such a pool will drive more volume to the FRAXBP pool. The addition of USDC to the base assets of the LP makes it more attractive for liquidity providers, deepening liquidity for both VST and FRAX as a result. Therefore we suggests the addition of a new gauge for the VST-FRAXBP pool on Frax.
Voting:
For: Add the VST-FRAXBP Gauge
Against: Do nothing