This Week in Frax - April 1st-7th

Governance passed its first major initiative for promoting Frax awareness, StakeDAO sdETH to remain locked, Bunni to receive gauges.

Samuel McCulloch

Apr 7, 2023

It was a quiet week for Frax with nothing major externally to drive the narrative in either direction. If you’ve been watching Frax Check, you would know that the fundamentals have been improving and the community is getting excited for the upcoming Shanghai upgrade. In this week’s review, we’re covering governance on governance on governance.

Frax Educational Incentives

DeFi Dave’s brainchild passed with flying colors this week and will start a new era of incentivized Frax based educational content. If you are interested in making content, below is the reward structure and we will be coming out with further instructions next week (stay tuned!)

Frax Educational Incentive Reward Structure

StakeDAO sdETH LP to remain locked

In what has turned into a questionable outcome, the DAO has voted against unlocking sdETH LPs. The issue is contentious because almost all the liquidity for the pair is locked for 2-3 years.

The main issue though is that LPs should have known the risks of locking. So while Frax has kept their side of the bargain to maintain the peg and provide FXS rewards, its StakeDAO’s fault for discontinuing the product. No money is at risk and the pool is still earning a 3.5% yield in FXS. So if they want to unlock, a rage tax will likely have to be added.

Bunni Hops BACK

In the wake of a fiery debate last month, Bunni has received gauges for its two Frax-based pools, FRAX/USDC and frxETH/WETH. Although people may have different opinions about the utility of Bunni, gauges and the locking of Frax liquidity is always encouraged.