We all know its gonna happen at some point so maybe its time to look at the options we have when moving FXS/FRAX to Uniswap V3 , to the gauge rewards and to include a veFXS boost.
I would like to propose the idea of using Lixir or Gelato to manage our FXS /FRAX liquidity on uniswap V3
By using the service of these other protocols we should earn tokens from their protocol and increase the staking APR for people invested in the pool.
While doing this we could also move the current FXS/ FRAX rewards over to the gauge system so this pool gets rewarded based on votes.
If we can add this pair to the veFXS boost then it give veFXS holders another boosted pool to invest in and gives FXS/FRAX holders more reason to invest in veFXS, so i see no down side to this.
i would like to hear peoples views about Lixir or Gelato , or other protocols that people may be aware of that are better options.
For full disclosure, i am a 3 year locked early investor in the FXS/FRAX pool and its one of my largest holdings.
ok, so maybe not Lixir , as they have an anonymous team. if they are not willing to tell us their names then why should we trust them with $10m’s
As a FXS/FRAX staker I personally can get behind this idea but do these Uni v3 pool managers perform well with volatile assets in general?
Admittedly, I haven’t kept up with this sector of the market but since I haven’t seen any of these services catch on I tend to be skeptical. Happy to be corrected though.
Strongly against this. Moving this pair to Univ3 would mean unlocking the previous one. After the huge runup we just experienced I expect a lot of people would take profits if they had the opportunity.
Having so much of the supply locked up is the reason why we were able to go so high on this rise.
FXS/FRAX is arguably the most important pair for the protocol and we should not risk losing that liquidity before a decent amount of protocol owned liquidity or other alternative is available to support the FXS liquidity.
50% of the staked funds in the pool are not locked up so if people wanted to leave they already can.
the pool is about to have a 50% reduction in rewards and this will cause some people to look for other ways to increase their returns.
i proposed this as a way to get people to re-lock there funds so we do actually have locked liquidity going forward and as a way to attract more investment in to the pool.
a side affect is it gives people more reason to hold veFXS, will increase the efficiency of the pool. it also gives the stake holders a 2nd income from the GEL coins earned for staking.
it also allows the protocol investors to vote on how much is a fair reward for this pool.
i would like to correct myself, its just under 50%
We could also make one small change, which is to require LPs to be locked to get rewards. That will surely get people to lock quickly
as its an old style contract we would still need people to move to a new contract if i understand things correctly
but i agree, only rewarding lock stakes is ideal, and is something that was changed when the USDC pool was moved to the gauge
ok, 10 day is up , lets vote and see what people think.
i do wonder which way the vote will go… lets see
I just want to add any help that is needed to set up the pool (recommendations, etc.), the Gelato team has you covered
Last month, we created of a strategy for Univ3 management where liquidity ranges are layered on top of each other overtime in a “brick by brick” solution (https://medium.com/gelato-network/how-g-uni-is-the-ultimate-concentrated-liquidity-solution-for-defi-2-0-3563f5e3bdf3).
This differs from an active rebalancing strategy since those are at much higher risk for losses, especially when they are realized every time the pool rebalances. With a “brick by brick” strategy, layers of FRAX/FXS can be sprinkled on a pair overtime.
How this would look in action would be if the price of FXS is $20, this G-UNI Pool #1 could have a range 4x above and 4x below the price ($5-$80). In whatever time it takes after the initial pool begins, if it gets close to going out of range (lets say the average price for FXS become $70), then we can layer another liquidity pool on top of it 3x above and 3x below ($23.3-$210). As you can see, over time the community can layer different bands of liquidity and decide the range and liquidity.
The philosophy behind the “brick by brick” solution is that the Frax and its LP participants should act as a “liquidity provider of last resort” and through this strategy, we can always incentivize that their is liquidity for FRAX/FXS. In addition, with veFXS gauges, stakers can direct rewards to relevant LP pools.