Authors:
Mockingbird
Summary:
This proposal introduces a one-time optional early exit program for the legacy crvUSD/L-FRAX Convex FRAX vault.
Eligible lockers may exit before lock expiry by paying a fixed 4% fee on the amount exited. The 4% fee is the sole economic condition of this optional early exit path.
This proposal applies only to this specific legacy vault.
Background & Motivation:
The crvUSD/L-FRAX Convex FRAX vault is a legacy route after the FRAX to frxUSD stablecoin transition.
This case is specific because:
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Long-duration locks were entered more than 2 years ago, before frxUSD existed as the supported successor route.
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Returns were only reasonable during the first few months, then remained very low for a long period, and have been 0% since around August 2025.
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The supported successor route today is frxUSD/crvUSD, while legacy crvUSD/L-FRAX lockers remain hard-locked in the deprecated route.
Frax has stated that if a controlled sunset is introduced for L-FRAX venues, crvUSD/L-FRAX would be included in a penalty-free exit process. At the same time, there is currently no planned timeline for a full L-FRAX sunset.
This proposal is a limited practical option for this single vault while broader L-FRAX sunset timing remains unresolved.
Proposal Details:
Scope
This FIP applies only to the legacy crvUSD/L-FRAX Convex FRAX vault.
Pool Address: 0x0cd6f267b2086bea681e922e19d40512511be538
Pool URL: Curve.finance
Vault Address: 0x67CC47cF82785728DD5E3AE9900873a074328658
Eligibility
- All existing lockers in this vault are eligible, including long-duration locks, provided the lock was created before the activation time of the early exit program.
Early Exit Terms
- Eligible users may exit before lock expiry.
- A fixed 4% fee is charged on the amount exited.
- The fee is paid to the Frax treasury.
- The 4% fee is the sole economic condition for using this optional early exit path.
- Participation is voluntary.
Implementation
- Frax/Convex may choose the technical implementation method, activation timing, and program duration, provided the scope and economic terms above are preserved.
Future L-FRAX Sunset
- If Frax later introduces a broader L-FRAX controlled sunset that includes this vault, that process may supersede this optional early exit program for users who have not used it yet.
Vote Options:
- For: Implement the proposal as described
- Against: Do nothing
1 Like
Thanks for your proposal. this can be posted on snapshot after 5 days of discussion period by request of author.
OK, please post it for voting if it’s possible. I’d appreciate your help in getting this FIP approved, you know this situation well.
@Mockingbird please review this section and its good we can go for vote.
Hello, this is the Curve pool: Curve.finance , it’s the same link you used.
This is the rest of the information I can see on Convex FRAX:
This proposal is up for voting here: Snapshot
A practical question for the Frax team:
If this proposal is approved, how would it actually be implemented, and on what timeline?
There has been some feedback that the current vault setup may not support a direct early unlock / migrate path. If that is the case, what implementation route would Frax consider feasible for this specific vault?
For example:
- Is there a way to let users exit directly from the vault by taking the 4% haircut?
- If not, could Frax/treasury implement an equivalent buyout or wrapper mechanism that achieves the same result?
- If neither is possible, what exactly makes this vault non-executable for an early-exit solution?
The intent is simple and has been clear throughout: allow existing lockers in this one legacy vault to exit now, taking a one-time 4% haircut. What is the practical path to make that happen, and how long would implementation take if approved?
That is true in some sense and this farm contract does not have ragequit/migrate functionality, bet We have technical option/solution for this which it would need some development, we will share more details after the voting period is done.
The vote has now passed.
Per your pre-vote comment that Frax has a technical option/solution and would share more details after the voting period, could you please confirm the next step here:
- who owns implementation of the approved early-exit path for crvUSD/L-FRAX,
- when the technical details will be shared, and
- the expected implementation timeline.
A brief update on process and timing would be very helpful.
Following up since the vote has passed and there has still been no implementation update.
Please confirm:
- who owns execution of the approved early-exit path,
- what implementation route Frax intends to use,
- when the technical details will be published, and
- the target date for making the exit available.
The vote settled whether this should happen. What remains is execution.
Hey @Mockingbird , congrats on your approved proposal. yes, the team already started the process. its important to mention that as it said before, the original Farm Contract does not have the Ragequit functionality, we need to go through another route to implement it and probably the process will be like this:
- Snapshot all user positions and balances on the farm
- Do a recoverERC20 call for the LP token to have our msig take all the LP out
- Create a new “claimer” contract and populate it with the farm participants and their entitlements, reduced by 4%. This is similar to how airdrops are handled
- Keep 4% of the LP and drop the remaining 96% in the claimer contract
- Let users claim
We will put update here soon, but the process could take around a month due to developments and timelocks.
The economic value of the approved early-exit path is already being reduced by implementation delay.
A 4% fee may be one thing when attached to prompt execution, but it is a different proposition if users remain locked without a concrete delivery schedule after approval.
Please provide clear target dates for implementation so the approved solution does not lose practical value through delay.
Please check your DM. for next steps.
Also FYI any LP in this farm seeking an early unlock should message @naderghazvini or the mods in the main Telegram group to request position unlocking.