FIP 94 - Approve OHM-FRAX Fraxswap Gauge

Summary:

Add an OlympusDAO OHM-FRAX gauge on Fraxswap with Mint and Sync (M&S).

Background & Motivation:

OlympusDAO is seeking to create a closer partnership with the Frax Finance community and ecosystem. Olympus had previously created deep liquidity with FRAX at a max depth of $17M, aided in Protocol-Owned Liquidity (POL) for Frax Finance through Olympus Pro (Total Bonded Value of +$5M) and current holds FRAX as Risk Free Value for the protocol ($33M in reserves). This partnership continued with a DAO swap (OIP-53 Execute DAO Swap with Frax Finance 3) and the acceptance of Olympus being able to lock its FXS tokens (FIP-38 Whitelist OlympusDAO to Stake veFXS 4).

Note: FRAX currently represents approximately 10% of Market Value of the Treasury and is considered a core reserve asset.

FIP-51 was posted so that Olympus’ LP would be whitelisted as a gauge. The proposal received feedback from the community to change the proposed LP from OHM-FRAX to gOHM-FRAX. This was suggested to make it easier for third party liquidity providers to receive FXS rewards. Olympus would like to propose an alternative option that not only incentivizes third party liquidity but it also will be the first pool receiving M&S. M&S approved pools receive rebases directly into the LP.

OHM-FRAX with M&S on Fraxswap will be protected from emission dilution and allow for the ability for liquidity providers to receive FXS rewards. Olympus currently holds ~209k FXS and intends to vote on the gauge if approved. In the past 3 months gOHM has performed well against the market which suggests that an OHM-Stable pool with M&S should be an attractive LP. Therefore driving TVL and volume to Fraxswap as Olympus’ primary OHM-FRAX market. With passing governance approval Olympus will seed liquidity to kickstart the pool.

Benefits of this Gauge:

1. Community-provided liquidity receives rebases directly into the pool
2. Exposure to one of the best performing assets in the past 3 months
3. Community liquidity providers are able to receive a portion of Olympus’ veFXS vote
4. Fraxswap becomes Olympus’ primary FRAX market
5. LP + M&S + veFXS voting will help to drive more volume and TVL to Fraxswap

Poll

• For: Add gauge
• Against: Do nothing