Implement FRAX/DAI pool ragequit function with 20% fee

Governance Proposals
1

Author: Jubi
Modified by: [pending FIP number]

I propose the implementation of a 20% ragequit function (similar to FIP -196) for the FRAX/DAI Gelato Uniswap Pool to address the needs of community members who wish to re-allocate their capital.

Implementing such a function represents a negligible risk to the protocol as the pool barely has any trading volume since May 2022. Furthermore, the TVL of the pool has only decreased since April 2022, leaving the pool currently at ~$2.9M TVL. Both facts highlight that the pool has had minimal adoption, making it an ineffective and non-productive way to direct capital.

With a 20% ragequit fee, community members will be allowed to exit their position and direct their capital to more productive avenues.

Additional Information
It is important to note that the Gelato network no longer looks after G-UNI pools as it was spun out into Arrakis Finance. There have also never been additional incentives for the gauge from Gelato’s side.

Vote:

  • For: Implement the ragequit function for the FRAX/DAI Gelato LP pool with a 20% fee.
  • Against: Do nothing
2

Hi Jubi

While we appreciate the effort to improve our protocol’s governance, we believe this proposal is not in the best interest of our ecosystem. We value the importance of maintaining locked liquidity, which serves as a crucial factor in the stability and resilience of our protocol. We understand that a 20% ragequit function may offer a tempting opportunity for a short-term profit, but we firmly believe that long-term sustainability should always be our top priority.

Frax Core Team

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