Mark11 changed the title to OIP-14 - Deploy 333,333 excess treasury FRAX to Convex Finance .

JFry4

This is a really good take. This could be optically uncomfortable to do (spending runway). The added FXS and therefore voting power in Frax is a nice benefit not to be overlooked, however.

      Convex is barely three-month old and I don't feel comfortable in depositing FRAX there. The argument that Frax Finance has deposited 72 million into Convex justifies us doing so does not convince me. If an exploit were to happen which resulted in a loss of fund, FRAX might still be able to hold its peg. Frax FInance would incur a loss in this situation, but Olympus wouldn't if we didn't deposit FRAX into Convex in the first place.

      We saw what happened to the token price and TVL of projects such as Alpha Homora and Alchemix when an exploit occurred. I don't think the risk/reward ratio is justifiable for us to pass this proposal.

        Hi kschan - yes there is risk with this proposal - it's really about what people are comfortable with. Convex contract is essentially a framing contract distributing rewards - the surface area isn't that large. Having a small amount deposited is a good way to manage the risk posed by it and the CRV stack. On the other hand we carry risk with any asset on the blockchain - Frax could have a collapse and our FRAX would be worth zero - Maker could collapse and our DAI would be worth zero. I am comfortable with the amount and the risk - I fully understand others will not be.

          Dudemyguy ah I

          Mark11 ahh I misunderstood (misread a previous post), I thought we would be earning FXS from this, extra Frax is even better. Thank you for the clarification ser!

              Mark11 huh? We wouldn't be earning FXS? Convex site is wrong?

                  Mark11

                  Really annoying that I can't just throw a screenshot in here...

                  Go to https://www.convexfinance.com/claim
                  Click on Curve Pools
                  Scroll down and click on Frax
                  Here it breaks down the rewards you can claim.
                  CRV, FXS, CVX are listed there.

                  In your screenshot you're looking at the Staking page.

                    Great idea.

                    The proposal wording doesn't cover what will be done with the rewards in a binding way. I guess the policy team decides or there'll be another vote (this will be tedious for a small amount and the many permutations)?

                    There are a few things that can be done with the rewards like selling, locking CRV into veCRV for up to 4 years, staking CVX to earn more CRV, locking the CRV rewards into CXVCRV, etc. ..

                    Selling doesn't build long term relationships but these reward tokens have huge selling pressure so if reward tokens are held, this should be seen as building relationships vs 'earning more yield on money sitting there'

                    5 days later

                    Orion.Money just launched their official partnership with FRAX. They are offering a stable yield of 13.5% APY by shuttling the FRAX to Anchor Protocol on Terra.

                    As we expand our treasury assets, Orion.Money offers some of the best "fixed" stablecoin yields in all of DeFi.

                    Yield from CRV/CVX are generated from swaps and emission incentives, whilst yield from Orion/Anchor are generated from PoS collateral and a money market.

                    Yields are paid in the stablecoin deposited and not in another governance token that would not contribute to the RFV.

                    https://twitter.com/orion_money/status/1419687572209639431?s=20

                    8 months later
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