Proposal to Add wFRAX Emissions for CRV/frxUSD Curve Pool on Fraxtal

Governance Proposals Gauges
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Proposal to Add wFRAX Emissions for CRV/frxUSD Curve Pool on Fraxtal

Summary

This proposal requests the allocation of wFRAX incentives to the CRV/frxUSD pool deployed on Curve (Fraxtal). This pool is pending CRV gauge approval and would benefit from complementary Frax-side rewards to catalyze growth in liquidity and usage.

Motivation

  • The CRV/frxUSD pool is strategically positioned to support:
    • Increased frxUSD utility and velocity
    • Stronger Curve–Frax synergy on Fraxtal
    • Broader adoption of Frax’s stablecoin across DEX ecosystems
  • Current state of the pool:
    • Base APY: ~11%
    • No active incentives
  • Adding Frax incentives can:
    • Boost TVL and trading volume
    • Improve liquidity efficiency
    • Encourage long-term deposits and composability with veFXS, veCRV ecosystems

Proposed Emissions

  • Initial Incentive: 5,000 wFRAX / week
  • Distribution: Allocated to the Curve gauge on Fraxtal
  • Review Period: Performance to be reassessed after 30 days for TVL, volume, and impact metrics

Technical Details

Benefits

  • Bootstraps liquidity on Fraxtal in a Curve-native USD pair
  • Strengthens the frxUSD peg through deeper, incentivized liquidity
  • Aligns incentives between Curve DAO and Frax DAO
  • Opens the door for broader Curve integration and deeper protocol liquidity routing