[FIP - 265] Add the Fraximal Vault Token to FXS Gauge Controller


Bajanss (marketing service provider to the Sommelier protocol DAO)


Proposal to add the Fraxlend optimizer Fraximal vault token to the FXS gauge controller

Background and Motivation

Fraximal is a vault on Sommelier, an innovative asset management protocol whose mission is to make DeFi more accessible, profitable, and efficient for everyone. Sommelier’s advanced technology built on the Cosmos SDK enables intelligent vaults that can optimize portfolios, trade long-short, borrow-lend, and farm. Independent strategists can leverage the power of off-chain computation to inform on-chain vaults, allowing vaults to dynamically adapt to market conditions and provide enhanced opportunities and risk mitigation to users. All vaults are enabled by smart contracts audited 0xMacro and controlled by protocol governance, ensuring transparency and security.

The Fraximal Facts.frax vault linkvault is different from other vaults in that it is intelligent, meaning it has the ability to predict, react, optimize and evolve to DeFi conditions whereas other vaults are static and limited to simple functions like auto-compounding or lending a single asset to one pool. The vault uses these intelligent capabilities to provide Frax depositors with the optimal yield available for collateralizing FRAX on Fraxlend. This is achieved through advanced modeling of past and real-time data from Fraxlend including interest curves, available liquidity, borrowed liquidity, and loan characteristics.

It can be complex, gas intensive, and time consuming to constantly track and react to the Fraxlend market movements. Fraximal aims to provide depositors with a simplified option to receive optimal yield on their FRAX while simultaneously being beneficial to the Fraxlend protocol. Increased FRAX deposits to Fraximal leads to more FRAX lending on Fraxlend. Deep liquidity on Fraxlend benefits the protocol in a number of ways including more liquid borrowing pools and a smoothing of borrow costs in high utilization pairs, both of which increases usage of Fraxlend.

The Fraximal vault launched on July 5th, 2023 and as of July 8th has attracted $1.3M of Frax liquidity and is the 7th largest lender on the protocol. The approval of an FXS gauge would aim to assist in attracting additional liquidity to the vault.



  • For: Approve a gauge for the Fraxlend optimizer Fraximal vault token
  • Against: Do nothing

This proposal is up for voting here: Snapshot

A) don’t see any need for frax to subsidize this.
B) would alienate direct depositors

A) It can stabilize and efficiently utilize our fraxlend markets if it gets big enough, so it is worth being added to our gauge list and letting veFXS owners decide how much they want to incentivize it in the future.

It’s fine to have a product like that. Doesn’t mean frax needs to pay for it.