Implement Strategy to Increase Frax's Curve Gauge Weight

Authors

Frax Finance Team

Summary

Move the FRAX3CRV-f metapool LP tokens to the Frax Investor Custodian EOA to obtain boosted CRV yields.

Motivation

Curve's Locker contract is the contract used for locking CRV to get veCRV votes. Externally owned accounts may generate veCRV as they wish, but smart contract accounts must be whitelisted in order to be able to generate veCRV votes and participate in Curve governance source. The whitelisting process is unrelated to normal Curve listing, and we are unsure at what point we can get whitelisted. As a result, we propose to move all of the Frax metapool LP tokens to a team-controlled EOA to get the 2.5x boost on CRV yields on the Frax gauge as a voter, and lock the farmed CRV for more veCRV to vote for higher Frax gauge weights. Our updated Curve AMO contract implementation that supports this logic can be found here

If adopted, this proposal seeks to:

1. Move the metapool LP tokens to the Frax Investor Custodian EOA from the updated Curve AMO
2. Deposit the LP tokens into the FRAX gauge to receive a boost in CRV yields
3. Vote-lock the CRV yields for veCRV
4. Use the veCRV to vote for higher Frax gauge weights

This benefits Frax as a whole by:

• Increasing Frax gauges by voting for them with the CRV generated by the metapool LP tokens
• Boosting the CRV generated by the metapool LP tokens