FIP 91 - Set gauge max lock limit to 1 year and 2x time boost

Author
C2tP (Convex Finance)

Summary
Set new FXS gauge pools to a 1 year max lock limit with a max 2x time boost.

Background & Motivation
There have been recent discussions on how long the time lock for pools should be. Three years can be too long and discourage people to do the full lock. A reduction to one year would encourage a higher average lock term. Sam of the Frax team believes their modeling shows a one year time limit with a max 2x time boost to be the most efficient.

Older pools are immutable and can not be changed. This would require migration if we want to change their time lock mechanics. This proposal, however, is for future gauges only and migrations will need to be dealt with in a different proposal

For:
Define new FXS gauge pools to use a 1 year max lock limit with a 2x max time boost.

Against:
Do nothing.

4 Likes

Thanks @C2tP-C2tP for posting this. We’ve been discussing shorter locks for a long time now. A 1 year lock with a 2x boost essentially doubles the current rate of return for 1 year locking. This is more efficient for the protocol while offering an even more attractive rate for lockers. I support this change.

Long term, I’d be interested in exploring having an unlock period (rather than a lock period) but that’s a discussion for a different day.

Seems quite unfair for those who are locked in the existing gauge pools though.

1 Like

very unfair for existing lockers, if you want to make the change make it available to all people. Not sure if the SC allows it but a possible solution is to reset existing gauges that are locked for more than 1 year to 1 year

In response to “unfair” statements…

This is to set new rules on future gauges. If a new rule is set, older gauges can then have their own proposal to migrate to follow the new rule.

Don’t think you should just unlock everything all at once so how and if old gauges get migrated would be best for another discussion.

This is a theoretically better change. We should look at new pools that use the new rules to see if the average lock time does indeed go up or not. Then decide if it should be tweaked again, or applied to old pools via migration

How would setting max lock of current gauges to 1 year unlock everything? Everyone with unlock timers < 1 year remains unchanged with an adjusted boost multiplier according to these new rules. Everyone with a lock timer > 1 year gets adjusted to 1 year with the new boost rules. Maybe I’m missing the fact that it’s technically unfeasible to migrate current gauges to a new gauge without unlocking them. I also agree its fine to first see if these new rules are net positive before migration but have time backdated

As stated, current gauges are immutable and can’t be changed. Thus you would have to move to a new staking contract

https://snapshot.org/#/frax.eth/proposal/0x5517cdf87db1be6ff19f8951669eeb790cb6c39e8c62d8a0206304567c179f28