Flywheel sfrxETH Performance Program

Governance Proposals Miscellaneous
1

Author(s)

DeFi Dave

Summary

Authorize a performance program for Flywheel DeFi to earn 1% of sfrxETH yield from the TVL that it brings into the vault.

Background

For nearly a year, Flywheel DeFi has been a staunch ally in the Frax ecosystem via its media and education efforts. Although Flywheel promotes frxETH in every episode of our flagship podcast and has commissioned extensive coverage of the primitive, there is currently no way to measure the tangible effect these initiatives are having on frxETH.

Currently, Flywheel is building a stealth project that will refer FRAX and frxETH to earn yield from selected partners with the goal of increasing Frax adoption throughout DeFi. With each of these partner programs, Flywheel is earning a part of the performance yield based on the TVL it brings in. We want to bring a similar structure when collaborating with sfrxETH.

Proposal Details

The performance program will work as follows:

  • Flywheel will deploy a feeder/wrapper contract for sfrxETH that will keep track of the amount of TVL that originates from else as well as the yield that comes from it.
  • We propose for all the TVL that comes from Flywheel, then Flywheel receives 1% of the total yield which will be split from 1/8th of the yield that would go to veFXS stakers. In this scenario, the 90% of yield that goes to sfrxETH stakers and 2% that goes into the insurance fund are not touched.
  • Performance yield is paid out on a monthly basis.

Motivation

We believe that this proposal further cements the already mutually beneficial relationship between Frax and Flywheel as well as aligns incentives even more by giving Flywheel a direct stake (no pun intended) in the success of one of Frax’s premier primitives. Flywheel will continue to leverage its growing media platform and reach to educate and encourage users to choose sfrxETH.

Proposal

  • Authorize 1% sfrxETH performance yield to go to Flywheel from TVL it brings into the vault

  • Do Nothing

*This post has been edited to more accurately articulate the split in yield from Flywheel originated TVL (90% to sfrxETH, 7% to veFXS, 2% to the insurance fund, 1% to Flywheel)

2

Flywheel will get a total of $214.2k this year as per FIP-178, why do these funds not cover this “stealth project”?

Why not make this whole referral-based sfrxETH public for everyone? More creators and influencers with different kinds audiences might catch on to the success of Flywheel DeFi and decide to join, all in favor of veFXS holders.

With all due respect of course, pardon me if directness is interpreted as rude :pray:

1 Like
3

Appreciate your response and concern monokuma, it’s completely warranted with proposals like these. I think there is a misunderstanding here, we are not asking for funds to build the stealth project, just that we have an opportunity to spread frxETH far and wide via this performance program.

And you are absolutely right, this sfrxETH system could be a model for future partners to copy but at the same time have their participation approved by the Frax community.

4

Thank you.

FIP-178 granted Flywheel DeFi funds in order to promote FRAX ecosystem. You say this performance program is to spread frxETH far and wide.
But frxETH is part of the FRAX ecosystem. So Flywheel DeFi asking for extra incentives to promote frxETH in particular feels like double dipping.

In this case I would vote against this program as it sets a bad precedent. FRAX is continuously building new products and Flywheel DeFi potentially taking a slice of each new release for a special promotional program is not something I’m in favour of. Flywheel DeFi gets a nice grant, and you guys are veFXS holders so profit off of FRAX growing as well.

That said:
I personally love what Flywheel DeFi is doing, you guys have great content and spreading positivity in general so I hope to see it thrive along with FRAX. If there are other things we are missing, or Flywheel DeFi thinks it deserves more funds for the amount of work you guys are putting in, I would like to hear this as well. I might give me some more clarity.

1 Like
5

Thank you, I think your response echoes a lot of what was being said in the frax telegram trading chat so I think I will just hold off on the proposal.

I would like to correct you though, Flywheel is not a veFXS holder because its a multi-sig. We would need to be whitelisted in order to do that.

1 Like