FIP 46 - Vesta Gauge on Arbitrum (FRAX-VST)


Add a veFXS gauge for FRAX-VST Arbitrum Curve pool.

Background & Motivation:

Vesta Finance is a general purpose lending-stablecoin system based loosely on Liquity’s trove model. Vesta Finance is launching their native VST stablecoin and protocol on Arbitrum imminently. Liquity’s model has been very successful but due to Liquity’s lack of governance and inability to update any kind of parameters, they cannot do anything. Vesta fills this gap as a much more general purpose and exciting lending system. They have expressed interest in also expanding their lending model to include FXS and other FRAX friendly tokens.

We’d like to propose to help incentivize and create deep liquidity for VST-FRAX at launch so the projects are aligned in every way. Vesta has also committed to doing VSTA incentives for this gauge so this would be a dual token FXS+VSTA rewards gauge. This gauge would also help our Arbitrum expansion, so I think it is a net positive in multiple areas.

For: Deploy FRAX-VST Gauge

Against: Do nothing


any idea on the value of the rewards Vesta will put up?

seems like a idea with no down sides, add it to the gauge and the market will choose how much it gets rewarded :slight_smile:

1 Like

The Vesta team told me tentatively that the value of the VSTA rewards would be quite high/respectable in the first month as they are looking to give a lot of emissions. Obviously I think the dollar value of it would vary a lot due to early trading volatility, but I am really bullish starting a gauge with dual FXS+VSTA rewards. I also think that they will continue to work closely with us and have this gauge be a source of VSTA emissions, thus it would not be a temporary thing.


A FRAX-VST pool on arbirtrum would infer that FRAX is available on layer-2 (Arbitrum) or have I got the wrong end of the stick?