Discussion; Curve Pool Optimization

Suggestion; Switch USD pools for FRAXBP

For pools where ibXXX assets are paired with USD stables, it would be a good idea to consider switching from USDC to the FRAXBP as the paired asset in each case

Benefits/Motivation;
As of the launch of FRAXBP, which is now live the FRAX team has committed to;

  • Frax will also strive to be an active partner for pools that decide to pair with the FraxBP by contributing to voting incentives for FraxBP metapools (Note; a metapool is any pool that pairs with FRAXBP)
    • Voting incentives are likely to happen on the Votium platform
  • With the whitelisting of FRAX to lock their CRV as veCRV, any veCrv Frax locks can be used for promoting Frax pools or metapools on the Curve gauge system
  • Metapools may receive a share of incentives based on organic TVL of the FraxBP in each pool. A maximum of 20% of yield from the FraxBP protocol-owned liquidity may be applied to each metapool and 50% of such yield applied to all metapools in total. (Note: Organic TVL, TVL not affected by incentives or gauge weight from Frax, is determined by the Frax Team.)

This would immediately provide some relief to Keep3r as it would no longer be the sole party incentivizing TVL to these pools

Additional Considerations;

  • Due to sUSD also being paired with FRAXBP in a metapool pair, this would allow for ease of future integration of sUSD onboarding and offboarding from ibXXX assets via integration of the AMM with the relevant curve pools.
  • It would therefore also make sense to allow USDC & FRAX as inbound and outbound assets on the AMM.
  • Should also be timed to ensure that any proposed change to the allocation of rKP3R rewards to gauges is harmonious with this change in order to secure maximum potential of TVL growth of the pool
  • Could be further supported in implementation by establishing peg maintenance strategies
  • There may be future opportunities to collaborate with the FRAX team on the Keep3r Jobs side, via automation of tasks

References;

Implementation;
Would likely require new proposals to be made in alignment with the FRAX team on both the FRAX forum & through Curve governance.

The Keep3r protocol could utilize its substantial vlCVX holding to vote positively for the switch to FRAXBP pairs for ibXXX assets

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