[TempCheck] Early withdrawal of stkcvxSTGFRAXBP and stkcvxCOILFRAXBP

Governance Proposals
1

Author: Dogw00d

This post is to see what others think about an early withdrawal of the Convex pools stkcvxSTGFRAXBP and stkcvxCOILFRAXBP. Since December 2025 the rewards per period have been near zero with pools no longer serving the long term functionality of Frax.

Explanation

These pools use LFRAX for LP Tokens that will become deprecated per the roadmap of FRAX. This does not serve the interest of the FRAX team and neither the investors who are considering reallocating to the proper mapping which will help boost FRAX’s incentives.

Not only are these pools using LFRAX but there are no FXTL point incentives for providing liquidity into these pools. There is a problem with keeping funds in these pools as it doesn’t give momentum towards the promises yet to be delivered from FIP 428.

A small resolution to the more broad picture is to allow for early FRAX investors to withdraw funds from these pools to reallocate into frxUSD for the purpose of benefitting investors and the FRAX team from this action.

Proposal Details

  • Early withdraw of stkcvxSTGFRAXBP and stkcvxCOILFRAXBP
  • Reallocate into FRAX’s new token
  • 4% Early withdraw fee

I would appreciate opinions and feedback on this matter to strengthen this informal post and make this a formal proposal. I would also like to say that I hope we can come to a mutual agreement on this topic. Thank you for your time.

Voting

For: Take action as described
Against: Do nothing

2

Correction: “deprecated” as used in this post is an inaccurate word and is meant to instead be understood as a pool with little to zero incentives being provided.

Also a voting section was not included:

Voting

For: Take action as described

Against: Do nothing

3

Thanks for raising this, @Dogw00d . Before this can progress, please review how similar requests have been handled, early exits from legacy Convex FRAX vaults have consistently carried a fee for unlocks. for example See FIP-442 (4% fee). The DAO has approved this kind of action before, but a fee has been the accepted condition each time. I’d encourage you to build one in along those lines before this moves to a formal FIP.

4

Thank you for raising this subject @nader.frax . I will accept the conditions as stated and edit the corrections in this reply.

Explanation

Further, in addition to the allowance of an early optional exit. There will be a 4% fee associated with the unlock.

Proposal Details

  • Early withdraw of two CVX pools
  • Reallocate into FRAX’s new token
  • 4% Early withdraw fee
1 Like
5

Hey @Dogw00d , please review the updated proposal and if it is fully aligned with your proposal then we can start the governance process.