[FIP - 446] Early withdrawal of stkcvxSTGFRAXBP and stkcvxCOILFRAXBP

Governance Proposals
1

Author: Dogw00d

This FIP is to pass an early withdrawal of the Convex pools stkcvxSTGFRAXBP and stkcvxCOILFRAXBP. Since December 2025 the rewards per period have been near zero with pools no longer serving the long term functionality of Frax.

Explanation

These pools per the roadmap of FRAX will continue to loose incentives. This does not serve the interest of the FRAX team and neither the investors who are considering reallocating to the proper mapping which will help boost FRAX’s incentives.

Not only are these pools using LFRAX but there are no FXTL point incentives for providing liquidity into these pools. There is a problem with keeping funds in these pools as it doesn’t give momentum towards the promises yet to be delivered from FIP 428.

A small resolution to the more broad picture is to allow for early FRAX investors to withdraw funds from these pools to reallocate into frxUSD for the purpose of benefitting investors and the FRAX team from this action.

Proposal Details

  • Early withdraw of stkcvxSTGFRAXBP and stkcvxCOILFRAXBP
  • Reallocate into FRAX’s new token
  • 4% Early withdraw fee

Voting

For: Take action as described
Against: Do nothing

2

This proposal is up for voting here: Snapshot

3

Supportive of this proposal.

If stkcvxSTGFRAXBP and stkcvxCOILFRAXBP are no longer receiving meaningful incentives and are no longer part of Frax’s strategic liquidity roadmap, maintaining capital locked in these positions appears inefficient for both participants and the protocol.

Allowing an early withdrawal mechanism provides users with flexibility to redeploy capital toward products that are actively contributing to ecosystem growth, particularly around frxUSD and current incentive programs.

I also appreciate that the proposal includes a withdrawal fee rather than a completely unrestricted exit, helping balance participant flexibility with protocol considerations.

That said, it would be helpful to provide additional transparency around:

  • current TVL remaining in the affected pools,
  • historical reward levels versus current rewards,
  • expected migration destinations and associated incentives.

Overall, I believe reallocating liquidity from inactive legacy positions toward active ecosystem priorities is a sensible step.