[FIP - 229] Expand eligibility for FXS gauge to include pools/vaults with frxETH as underlying token

Author

Frax Core Team

Summary

This proposal seeks to expand the eligibility criteria for the FXS Gauge within the Frax DAO system. We propose to include pools or vaults with frxETH as their underlying token alongside those already eligible with FRAX.

Background and motivation

The FXS Gauge mechanism, designed to incentivize locked liquidity, has until now been primarily limited to pools or vaults deploying FRAX as their underlying asset. Including the frxETH-ETH pair was a notable exception, marking one of the first occasions where a non-FRAX stablecoin pair was whitelisted. This proposal aims to extend the eligibility to other frxETH pairs, in response to the Frax community's feedback and to further enhance the functionality and adaptability of the Frax ecosystem.

After careful consideration, we believe that frxETH, just like FRAX, plays a crucial role in our ecosystem and should be equally eligible for gauge incentives. Additionally, veFXS holders can decide where they see the best value, providing a democratic solution to any potential distribution concerns.

Details

Upon approval of this proposal, pools or vaults with frxETH as their underlying token would be eligible for the FXS Gauge system. We believe this is a step forward in our ecosystem, offering more options and flexibility to our community. The team is fully aware of the potential challenges it may bring, and we commit to closely monitoring the situation and making necessary adjustments when and if they become necessary.

Vote

• For: Expand Eligibility for FXS Gauge to Include Pools/Vaults with frxETH
• Against: Do nothing.