# FIP-62 - FRAX-IQ Pool modifications **URL:** \ **Category:** Gauges\ **Created:** [May 5, 2022, 5:42am UTC](https://gov.frax.finance/t/fip-62-frax-iq-pool-modifications/1340 "2022-05-05T05:42:12Z")\ **Posts on this page:** 8\ **Page:** 1
**Author:** ![Mark11](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.frax.finance/mark11/32/21_2.png) [@Mark11](https://gov.frax.finance/u/Mark11)\ **Post date:** [May 5, 2022, 5:42am UTC](https://gov.frax.finance/t/fip-62-frax-iq-pool-modifications/1340/1 "2022-05-05T05:42:12Z")
Author: Mark11 - Fraximalist community member Revised proposal - this proposal has been revised to remove discussion about liquidity assistance or migration to a Fraxswap pool until a further vote. This proposal will only deal with the unlocking of current LPs and the transfer of the current FRAX-IQ pool to the Frax gauge system program. **Summary** This proposal, if passed, would move the FRAX-IQ FXS rewards pool to Fraxswap and the FXS gauge reward system. The current FXS emissions directed to FRAX-IQ are to be ceased and retained in the treasury. **Background** Currently, we are spending about $8mm a year in FXS on rewards for the FRAX-IQ pool which has a TVL of $5.6mm. The FRAX-IQ pool is an outlier in that its rewards are not set by the gauges - I propose that we change that. ![](https://canada1.discourse-cdn.com/flex031/uploads/frax1/original/1X/acd2891e839c0e3877d66f3a55c26ed5d9fc553e.png) While we are very close to the Everipedia community, I think it is time we reassessed whether the current arrangement serves either community very well - as it appears to create inefficient dilution to FXS holders and does not allow Everipedia to use its IQ token to bribe in the gauge system. For example, it would be far more beneficial for FXS holders if we bonded FRAX-IQ in through Olympus Pro for FXS - at the end of a year instead of paying out $8mm in FXS for temporary liquidity of $2.8mm in FRAX we would own $8mm worth of FRAX-IQ liquidity. Everipedia themselves have been using Olympus Pro to build up their own liquidity - pulling in $1.4mm on ETH mainnet and $250K on Arbitrum. ![](https://canada1.discourse-cdn.com/flex031/uploads/frax1/original/1X/b52d63369f94c6f8684766a0674e4def3a5e5802.png) ![](https://canada1.discourse-cdn.com/flex031/uploads/frax1/original/1X/f054e501dd06abd10506143689439d31ac933639.png) This should provide Everipedia some buffer if there are LP’s who decide to cease liquidity provision as a result of moving the FRAX-IQ pool to the Frax gauge system. **Motivation** This proposal’s motivation is to: 1. Cease inefficient dilution to FXS holders directed at the FRAX-IQ pool outside the FXS gauge system 2. Allow the Everipedia community to use its IQ token for gauge reward bribes instead of co-pool incentives **Proposal** This proposal will: 1. Unlock the current FRAX-IQ pool liquidity providers 2. Transfer the current FRAX-IQ pool to the FXS gauge system with immediate effect. This will allow Everipedia to use IQ incentives to bribe their gauge and compete in the Frax wars which is beneficial to both Frax and Everipedia. The current FXS emissions directed to FRAX-IQ are to be ceased and retained in the Frax community treasury. **Vote** For - Transfer FRAX-IQ pool to the FXS gauge system Against - Do nothing ---
**Author:** ![dds](https://avatars.discourse-cdn.com/v4/letter/d/ee7513/32.png) [@dds](https://gov.frax.finance/u/dds)\ **Post date:** [May 6, 2022, 5:15pm UTC](https://gov.frax.finance/t/fip-62-frax-iq-pool-modifications/1340/2 "2022-05-06T17:15:21Z")
Excellent suggestion on removing the gauge. Might want to break out the co-funded liquidity pool on Fraxswap to a separate vote. What do you mean on permanent liquidity? ---
**Author:** ![C2tP-C2tP](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.frax.finance/c2tp-c2tp/32/378_2.png) [@C2tP-C2tP](https://gov.frax.finance/u/C2tP-C2tP)\ **Post date:** [May 8, 2022, 1:13pm UTC](https://gov.frax.finance/t/fip-62-frax-iq-pool-modifications/1340/3 "2022-05-08T13:13:46Z")
I agree this should be broken up into two proposals. The gauge migration should happen asap. No reason to have a non-gauged pool in the reward system. Just a clear and cut simple migration. Talks of liquidity provision can be discussed afterwards and if it’s in Frax’s interest or not. (Including the smaller $200k liquidity package) ---
**Author:** ![maveri75](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.frax.finance/maveri75/32/382_2.png) [@maveri75](https://gov.frax.finance/u/maveri75)\ **Post date:** [May 9, 2022, 1:52pm UTC](https://gov.frax.finance/t/fip-62-frax-iq-pool-modifications/1340/4 "2022-05-09T13:52:47Z")
i disagree with the proposal unless pool 'll be unlocked before migration. ---
**Author:** ![Mark11](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.frax.finance/mark11/32/21_2.png) [@Mark11](https://gov.frax.finance/u/Mark11)\ **Post date:** [May 10, 2022, 2:05am UTC](https://gov.frax.finance/t/fip-62-frax-iq-pool-modifications/1340/5 "2022-05-10T02:05:21Z")
Thanks @maveri75 - this is included in the transfer to the gauge system (now noted in the proposal) ---
**Author:** ![Tempus](https://avatars.discourse-cdn.com/v4/letter/t/57b2e6/32.png) [@Tempus](https://gov.frax.finance/u/Tempus)\ **Post date:** [May 10, 2022, 9:45am UTC](https://gov.frax.finance/t/fip-62-frax-iq-pool-modifications/1340/6 "2022-05-10T09:45:55Z")
Hi Mark, I disagree with the proposal. Either it is done on all the pools that have the same condition (FXS / FRAX - SADDLE …) or it is not right to do it only on some. ---
**Author:** ![Mark11](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.frax.finance/mark11/32/21_2.png) [@Mark11](https://gov.frax.finance/u/Mark11)\ **Post date:** [May 10, 2022, 12:44pm UTC](https://gov.frax.finance/t/fip-62-frax-iq-pool-modifications/1340/7 "2022-05-10T12:44:13Z")
Thanks Tempus - yes I will be posting up a separate proposal to remove the D3 Saddle pool tomorrow. The FXS/FRAX pair is integral to the protocol mechanism atm and everyone would have to be satisfied we have adequate liquidity elsewhere before any change to it is proposed ---
**Author:** ![Mark11](https://yyz1.discourse-cdn.com/flex031/user_avatar/gov.frax.finance/mark11/32/21_2.png) [@Mark11](https://gov.frax.finance/u/Mark11)\ **Post date:** [May 14, 2022, 2:32am UTC](https://gov.frax.finance/t/fip-62-frax-iq-pool-modifications/1340/8 "2022-05-14T02:32:06Z")
For posterity sake - the proposal has moved to snapshot - the below words in the summary should have been deleted as this proposal, as updated, does not move the pool to Fraxswap: > [@Mark11](#): > > to Fraxswap and