[FIP - 3XX] Implement Ragequit for Uniswap v3 FRAX/USDC LP

I propose the implementation of a ragequit function for the FRAX/USDC Uniswap v3 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.

Two years ago I entered a locked position that continues to yield below inflation APY%. This means that I am losing purchasing power due to inflation and the opportunity cost of capital allocation in this liquidity cycle.

The proposed solution is a ragequit function that will allow community members to exit their positions in the FRAX/USDC Uniswap v3 liquidity pool with a fee. Should the ragequit standard be ratified I will accept these fees.

Vote

• For: Implement the ragequit function for the FRAX/USDC Uniswap v3 pool with a standard ragequit exit fee
• Against: Do Nothing

1 Like

The ragequit standard is awaiting another suggestion/proposal/amendment. If there is no update within the end of this week, I will ask for it to go into voting come Monday.

Did this go into voting?

I will ask for an update from the guy writing the amendment. I will come back to you with an answer soon.

Hello

I’m in support for a ragequit function for the RAX/USDC Uniswap v3 liquidity pool as well

my reasons being :

  1. APR being most likely one of the lowest on the entire platform for a long time with no chance of ever recovering (it’s been below the inflation rate for 2 years now)
    (I, personally, locked 120k for 3 years and have received around 11k USD in yield in 800 days with the remaining 300 days only yielding 400 USD…)

  2. The pool has been mostly useless as a trading pool since its beginning
    as it got vampire attacked early on by another uni v3 pool with 0.01% fee, this pool took most of the vol/fee’s for almost 1–2 years. It only has stopped now as their pool has gotten imbalanced

  3. one of the reasons the Apr has gotten, so bad is that the pool size is too big and since the launch of the pool, so many options have been added to the gauge deluding the votes which makes this pool impossible to balance to a healthy Apr

with a ragequit on this pool, I believe it will shrink to a more healthy size. So that it can balance the Apr again

So. Now we have 90m being locked (mostly 300 days + still) yielding at best 0.4% Apr
sitting in a pool that barely see’s any use or volume

I, personally, would not mind a 20% fee (which would be a net loss of 14k)
but being locked for a further 300 days with practically zero yield is far worse while there’s so many better options out there currently in the frax eco (sfrax - frax/fpi on fraxtal - deposit frax on ethena etc. ) which all far more help out the frax eco than this useless pool

in the future, I think frax should look into a front end on the staking pool system

so instead of locking ur self to a pool itself, you instead lock ur self into the frax eco
and you can move freely between the pools on frax this would also create a heavy competition for bribes to keep the pools interesting, which then again, would be good for vefxs

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@Sharkysnakefish apologies for the ping. Is there an estimated timeline on this?

Hello,

Thanks for asking.

I am waiting for the other community member to make some changes to the algorithm. I will ask him when we can expect the next update. Sorry it is moving slowly, but it is a proposal that is important to get right.

I would also urge you to ask in the telegram chat (Telegram: Contact @fraxfinance) to the core team if it is possible to implement a ragequit for this pair. I know some other pairs does not have that ability in the contract when they were created, and hence they tried to shutdown the pair instead without success ([FIP - 353] Shut down Convex rETH/frxETH for an 8,300 FRAX fee). Quite sure no-one would accept the FRAX/USDC pair be shutdown, but it might be good for you to know that your current proposal might be impossible.

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Thanks for your input @Sharkysnakefish
Is there any news on this one?

Cheers