Author
Sam Kazemian
Summary
Deploy a FRAX-SYN Fraxswap gauge to the gauge controller.
Background and Motivation
Synapse Protocol is one of the emerging bridge projects that has had a good relationship with FRAX for quite some time. The team is professional, helpful, and has bridged synFRAX on multiple chains to date. Previously, FRAX did an Ondo.finance FRAX-SYN vault as a partnership between the two projects. On maturity, this vault had some bad debt on closing and thus Synapse paid in SYN per the terms of the Ondo.finance vault. Thus, FRAX protocol has a significant amount of SYN. We’ve been working in cooperation with the Synapse team to build positive value together so they can both repay their FRAX fixed term debt from the Ondo vault as well as get their SYN returned after FRAX denominated debt has been repaid. We’ve suggested that to build good liquidity onchain, we can propose a FRAX-SYN Fraxswap gauge to get FXS emissions toward this.
The Synapse team has also expressed a commitment to do SYN co-incentives for this gauge together. This helps both FRAX & Synapse in multiple ways: SYN gets deep stablecoin liquidity onchain, FRAX can deploy POL with the SYN that it currently has to earn SYN rewards, and both communities can LP to earn both FXS+SYN+fees. Additionally, the TWAMM functionality of Fraxswap can be used to slowly repay the FRAX debt over a reasonable period of time for Synapse Protocol, putting them on strong footing and creating a great partnership opportunity for both projects.
PROPOSAL
For: Deploy a FRAX-SYN Fraxswap gauge to the gauge controller.
Against: Do nothing