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FraxFraxby0x3689c216f8f6ce7e2CE2a27c81a23096A787F5320x3689c.eth

Execute Toke/FXS token swap as part of launching FXS's Tokemak reactor

Voting ended over 4 years agoSucceeded

Forum thread: https://gov.frax.finance/t/fip-29-toke-fxs-treasury-swap/169

Background and Motivation: As part of launching FXS's Tokemak reactor we need to perform a token swap between the FXS and Tokemak treasuries. This will provide Tokemak with a reserve of FXS tokens to mitigate against impermanent loss for reactor stakers when liquidity deployment goes live and will provide Frax with a supply of Toke that can be used by Frax to direct liquidity and incentivize the FXS reactor with Tokemak rewards. Further information about the reactor launching process: https://medium.com/tokemak/the-path-to-liquidity-deployment-4cf9885eb619 Introduction to Tokemak more broadly: https://medium.com/tokemak/introducing-tokemak-the-utility-for-sustainable-liquidity-8b99a4757301

Proposed Action: This proposal authorizes up to 1M FXS from the FXS treasury to exchange for an equivalent amount TOKE determined by a 7 day average market price of each token.

Projected Impact: FXS will be able to launch its own Tokemak reactor. In addition by holding a significant supply of Toke Frax will be able to both direct the FXS liquidity in the reactor and incentivize the reactor with Toke rewards. Frax will have a large seat at the Tokemak governance table from day 1. It should be noted Frax is not required to subsidize the reactor or provide rewards to stakers; stakers in FXS's reactor will receive Toke rewards provided by the Toke team.

Off-Chain Vote

YES - Authorize FXS/TOKE swap
8.79M 100%
No - Do nothing
0 0%
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Timeline

Oct 20, 2021Proposal created
Oct 20, 2021Proposal vote started
Oct 23, 2021Proposal vote ended
Feb 07, 2026Proposal updated