[FIP - 353] Shut down Convex rETH/frxETH for an 8,300 FRAX fee

Governance Proposals AMOs
1

Summary

Shut down Convex FRAX rETH/frxETH for an 8,300 FRAX fee.

Background and Motivation

As C2tP indicated, Convex FRAX rETH/frxETH doesn’t have a migration function, but it could be shut down so that lockers could withdraw. As FRAX can’t just charge a rage quit fee in this scenario, I propose the protocol to pay 8,300 FRAX to shut it down so that I can unlock my LP tokens and then withdraw from them on Curve.

Since I locked in that product 234 days ago, these have been my total claimed rewards plus my currently claimable ones: 8141,27 CRV + 67,16 CVX + 378,77 FXS. That’s a total of $7,696 as of now. I own 93% of the Convex FRAX TVL, so I would pay 8,300 (7696/0.93 rounded up) FRAX for the protocol to shut it down.

This pool has almost no volume, so the protocol doesn’t benefit in any way from me providing liquidity there. On top of that, if I can leave the pool I’d be able to provide liquidity in some other FRAX products, which would also be better for the protocol.

Pool Details

Pool / LP Token : ETH: 0xe7c6E0A739021CdbA7aAC21b4B728779EeF974D9
My Convex FRAX vault: ETH: 0x8335EAd657C223A16F2cF8762FD88f8A3a32DbB8

Vote

• For: Shut down Convex FRAX rETH/frxETH for 8,300 FRAX
• Against: Do Nothing

1 Like
2

Personally is against this, and will vote against. With the launch of frxETH v2, I think this pool can become more useful and see traction. Shutting it down to start it up again in the future seems unnecessary. rETH (Rocketpool ETH) is one of the leading LSTs out there, and it is natural frxETH has pairs with the leading tokens in Frax Swap.

1 Like
3

In theory, it should be a popular pair. In practice, there’s no volume, as I’m showing in the screenshot. So it’s not serving any purpose. Instead, the protocol could at least get this fee, and I’d be more willing to invest in FRAX products after this, and locking FRAX pools. Having to stay locked up here is a really bad experience.

rETHfrxETH
rETHfrxETH826×698 70.1 KB

1 Like
4

I think it is more beneficial to wait until after frxETH v2 to see how it evolves. I think shutting down the pair now is too early. I would urge you to wait until frxETH is live and then a couple of months more so the pieces can fall to place.

1 Like
5

What could be the approximate cost of shutting down and reopening the pool in the future?

1 Like
6

I tried bribing instead, I’ll propose shutting down again if that doesn’t go well.

7

This proposal is up for voting here: Snapshot