[FIP - 196] Implement FRAX/mUSD pool ragequit function with 20% fee

Author: WhiteWidow
Modified by: 01100010 01100111

I propose the implementation of a ragequit function for the FRAX/mUSD liquidity pool to address the needs of community members who wish to re-allocate their capital. This function will provide community members with greater flexibility and freedom in managing their capital while ensuring that the underlying protocol is not exposed to significant risk. The proposal also aims to generate profits for the protocol if passed.

The current FRAX/mUSD liquidity pool has seen minimal adoption with FRAX transaction volume since its inception, making it an ineffective and non-productive way to direct capital towards. The proposed solution is a ragequit function that will allow community members to exit their positions in the FRAX/mUSD liquidity pool with a 20% fee.

Additional Information

It is important to note that the mStable project is facing challenges such as difficulty in raising capital, limited funds, and market strategy issues. Moreover, the project has stopped directing any MTA rewards to the FRAX/mUSD liquidity pool.


• For: Implement the ragequit function for the FRAX/mUSD gauge with a 20% fee.
• Against: Do Nothing

1 Like

I still think the ragequit fee is low. Sam K said in the chat that the pool should pay for the total emissions that have been paid out. There’s no analysis of how much that was and what sort of discount that would mean to the fee.

You believe the lockers should only be able to withdraw their money from a dying protocol (mUSD), if they paid every single FXS reward back, so basically gave this money to the Frax protocol for 1 and a half years for free?

Btw, this proposal is likely close to fully paying fxs rewards back, and it’s probably a loss for lockers if you count in inflation, which is for some a good reason to hedge against with stable farms.

1 Like

This proposal is up for voting here: Snapshot

There is only 7.5m USD remaining locked. Currently, a total of 176k FXS have been claimed. The lazy method of using $10 per FXS (roughly the current price) would put emissions at 1.76m. So if the remiaing 7.5m were to rage quit and cover the entire emissions cost it would be roughly a 25% fee.

There are certainly more accurate ways to measure the fees.

  • Price of FXS at time of Emission
  • Include Allocated but Unclaimed FXS
  • Take an exact measure of USD Years staked

Measurements could even be itemized to be against individual wallets. It could take the remaining 7.5m and analyze its average yield. The yield for this 7.5m was lower than 20%.

Given the status of the mStable project, this is a quality feature to provide the community.