Summary:
Remove FRAX-SUSHI gauge so the pool stops receiving FXS.
As pointed out by community members, SUSHI-FRAX liquidity pool is relatively small in terms of TVL and participation in 24h volume of FRAX transactions. Also, this gauge oddly incentivizes staking SUSHI more than staking ETH or even FXS.
We would like to propose removing the gauge from FXS as this essentially allows stable pools and other FRAX/FXS/FPI/FPIS-focused pools to gain more rewards. Also, FXS emission would be used more efficiently for the stability of FRAX as well as the extension of the market cap of that.
This is somewhat of an unusual proposal and it will also be used as a way to test community sentiment on having FXS receiving gauges on pools that source their yield from FXS.
Implementation:
We will set the farm reward to 0 for SUSHI-FRAX pool and people can withdraw from the farm afterward.
Poll:
- Kill FRAX-SUSHI gauge
- Do Nothing
Appendix:
FRAX Circulating Supply Breakdown: Dune
FXS Gauges data references:
FXS Gauges:
| Pool |
Weekly FXS Rewards |
Weekly % Rewards |
TLV |
Total LP token |
Staked LP Tokens |
Annual Percentage Reward |
| FRAX/USDC (Uniswap V3) |
26349 |
30.1 % |
$263,252,000 |
48970 |
47943 |
12.76% |
| FRAX/TEMPLE (Temple) |
20628 |
23.6 % |
$43,243,000 |
6237000 |
6235000 |
59.55% |
| FRAX/DAI (Uniswap V3) |
16358 |
18.7 % |
$158,671,000 |
31913000000 |
30404000000 |
13.50% |
| FRAX/SUSHI (Sushiswap) |
11012 |
12.6 % |
$26,741,000 |
8312000 |
8307000 |
51.42% |
| FRAX/agEUR (Uniswap V3) |
2920 |
3.3 % |
$14,623,000 |
103620000 |
103610000 |
24.92% |
| FRAX/3CRV (StakeDAO) |
1895 |
2.2 % |
$45,573,000 |
40143000 |
19982000 |
10.43% |
| FRAX-Orbit (Vesper) |
1699 |
1.9 % |
$13,947,000 |
13799000 |
13776000 |
15.23% |
| FRAX/mUSD (mStable) |
1071 |
1.2 % |
$10,579,000 |
10558000 |
10552000 |
12.64% |
| FRAX/DAI (Gelato) |
879 |
1 % |
$7,493,000 |
1491000000 |
1491000000 |
14.64% |
| FRAX-ETHput (StakeDAO) |
748 |
0.9 % |
$20,522,000 |
16123000 |
12343000 |
5.94% |
| FRAX/VST (Curve) |
545 |
0.6 % |
$9,061,000 |
9047000 |
8603000 |
7.89% |
Current FXS Price: $24.749
SUSHI-FRAX Address: 0xe06f8d30ac334c857fc8c380c85969c150f38a6a
SUSHI-FRAX Gauge: 0xb4Ab0dE6581FBD3A02cF8f9f265138691c3A7d5D
2 Likes
I would be of a different opinion if there was a partnership with Sushi but there isn’t - with the launch of Fraxswap supporting Sushi which only has x*y=k pools makes even less sense - gauge is outsized negative for the protocol atm and for the foreseeable future - would be good to nerf it. If there is any significant business development opportunity in future it can be reactivated.
The only downside to this proposal is that it opens the door to politicizing removal of gauges - adding gauges is already politized so not a big deal.
Will be good if we can agree on general criteria or considerations for adding/removing gauges
2 Likes
I agree with you, we need to work on general criteria or considerations for adding/removing gauges.
2 Likes
maybe there are other ways rather then kicking a pair out of the gauge.
maybe,
non FRAX to stable pairs have a capped gauge reward, no more then 2-5%, or
veFXS voters get no voting boost when voting for non FRAX to stable pairs.
we have a number of pairs outside the gauge that incentivizes staking other assets more then FRAX assets, so maybe the sushi pair could just be moved out of the gauge and put on a fixed rate of rewards
maybe we could reach out to sushi to see if they want to offer rewards to the pool before we take action.
No pool should ever be outside the gauge system besides crucial pools like frax/fxs.
I’m told the IQ pool and d4 on saddle are currently both outside. For IQ there is currently a proposal to move to gauge. D4 should also be moved.
Involving Sushi seems the smartest way forward here: they should definitely be interested in having the opportunity to incentivize the pool before it is turned down…
I’m agree with the proposal.
I agree to remove the gauge on FRAX / SUSHI
If the offer is confirmed, please expel Sushipool .Please release the lock-up of the people who did the steak
1 Like
I liked the idea of “non-FRAX to stable pairs have a capped gauge reward”. but I think it should be proposed in another proposal. especially because we should think about a way that this reflects our rewarding deals.
Regarding the deal with SUSHI, I think we can go ahead with the proposal as well as negotiate with them and in case they offer rewards we can bring our rewards back.
1 Like
i think they can only have ETH pools in the gauge , so loads of pools wont be in it