FRAXswap Early Liquidity Budget

As we all know it will soon be time for the “BIG 3” to be added to the FRAX ecosystem.

FPI (including the FPIS airdrop) FRAXlend FRAXswap

And this is something the team and us investors have been excited about for months.

In this thread i would like to put forward the idea of creating a budget that the team may use to help attract early investors and maybe even early users of the FRAXswap platform when it goes live.

I would like to propose we give the team permission to mint up to an additional 500,000 FXS (around $17.5m at today’s prices) to create a budget that could be used to help attract liquidity and users to FRAXswap in its first few months after launch.

If this budget gets voted in then the team will have permission to use the budget any way they choose as long as its being used to help FRAXswap gain liquidity and/or users.

Some examples of how the budget could be used are.

addition FXS rewards for early LP stakers, tapering off over a few months.

a random airdrop with a snapshot taken in the first few months and LP stakers getting rewarded.

early users are added to the airdrop.

the budget could be used to reward people that help promote the big 3.

this budget could fund a twitter giveaway, “retweet this post and 5 people will win 100 FXS”.

we could reward the first few protocols that trade on FRAXswap and post about it on twitter.

I would like to point out that if this does go to vote and it does pass then the team can still choose to veto it and there is nothing forcing them to carry out any action if they feel no action is needed.

My reasons for thinking a budget is needed is pretty simple. FRAXswap is built for large whales and protocols to use when they are doing large token swap. For them to be able to do this from day 1 we will need to have a good amount of liquidity. So we need to hit the ground running and be able to provide a service to the bigger investors from the start.

My second reason is, we are about to hand out a big chunk of $FPIS to investors (including other protocols) and i feel many investors are simply looking to sell and move on, but if we give them an attractive location to stake their $FPIS which maybe has another airdrop or increased rewards then its more likely that $FPIS holders will just stake their airdropped coins which in turn increases the liquidity for the few that still want to sell.

We only get one chance to launch FRAXswap and I want the team to have every tool they may need to make it a go as well as possible.

FOR = allocate 500,000 FXS to FRAXswap launch budget.

AGAINST = do nothing.