With the rising FXS price it becomes ever harder to enable a full farming boost.
With the current FXS price at 18$ people are required to lock up 18$ value for 4 years in order to be able to fully boost 2$ worth of LP.
This asymmetrical ratio will only keep increasing with further growth of the FXS price.
As this continues people will be less inclined to buy and/or lockup FXS (It’s just not efficient capital deployment anymore).
The boosting element is easily one of the most attractive aspects of FXS and I believe it is one of the main reasons why we got to see 75% of the circulating FXS supply get locked up.
In the current situation newcomers and even OG’s are priced out of this very aspect, it is simply not attractive anymore for anyone to lock up their FXS.
My proposal is to adjust this ratio to decrease the current asymmetry.
Current ratio setting: 4veFXS boosts 1 FRAX. (2$ of LP)
I suggest we start discussing here and try to find a fitting ratio and create a balance to operate between the fine lines of:
-veFXS boost being too easily attainable- = low FXS buy demand because people don’t need many.
-veFXS boost being too hard to attain- = low FXS buy pressure because the risk is not worth the reward. (current situation)
One idea would be to find a way for this to be automatically adjusted in accordance with the fluctuating FXS price. We just need to find that golden ratio.