Convert pitchFXS into a TBT

The community in the Hourglass Telegram and Discord have discussed a number of different possible mechanisms for tightening the peg between FXS and pitchFXS. One of the most popular ideas to date is to:

1. Disable extensions of the existing permanent lock on pitchFXS.
2. Once the existing lock expires, enable redemptions of pitchFXS for FXS at a 1:1 ratio.

The current unlock time, as of this writing, is December 10th, 2026. By making pitchFXS convertible to FXS upon lock expiration, the market price of the two assets should converge to the same value upon maturation. This would rectify any price discrepancy. Put another way, this strategy effectively converts a permanently locked wrapper to a time-bound token (TBT). pitchFXS would maintain its gauge and governance power until it unlocks.

This approach can either wind down the current product or serve as a template for future FXS TBT offerings. For example, there could be multiple durations of pitchFXS — one that expired in 12 months, 24 months, another in 36 months, and so on. This would introduce a natural yield curve for the FXS token that's not currently expressible in the Frax ecosystem. It would also relieve the protocol from having to sustain permanent-lock discounts on the governance token.

The Hourglass marketplace is specifically designed for duration assets like this, aiming to address the many challenges related to liquidity fragmentation and capital efficiency that emerge when creating bonds for assets with varying lock times. This platform would be the ideal trading venue for both pitchFXS and Convex staked LP positions in the pitchFXS/Frax FraxSwap pool.

This would also be the first implementation of a time-bound token wrapper for vote-escrow governance tokens. If successful, the model could naturally extend to other ecosystems.

Visit the Hourglass Discord channel about pitchFXS for community discussion (linked below)!