Pre-Allocate BrainDAO’s veFRAX Position and Strategies

Governance Proposals
1

IQAI is the number one holder of FXTL Points. As such the BrainDAO Treasury will soon receive a huge veFRAX position that will continually increase over time due to FXTL point conversions to veFRAX

I propose that the BrainDAO decide ahead of time how to best utilize this Treasury Asset.

  1. I propose that the BrainDAO convert FXTL points to the maximum possible amount of veFRAX, by selecting 4 year locked veFRAX as conversion option.
  2. I propose that 100% of the BrainDAO’s veFRAX voting emissions be directed to IQ liquidity such as the existing IQ-frxUSD on curve/Fraxtal network. Ideally emissions will be directed to LPs that are more beneficial to IQ, such as IQ-sfrxUSD or IQ-WETH, IQ-WBTC, or IQ-sfrxETH on Fraxswap V2, Ethereum Network. Exact distribution of votes amongst available IQ LPs can be optimized with future votes or by the IQ team.
  3. I propose that at least 20% of the yield from the BrainDAO’s veFRAX position be used to buy-and-burn IQ, which will greatly increase the IQ burn rate.
  4. I propose that at least 30% of the yield from the BrainDAO’s veFRAX position be used to buy IQ, which will then be transferred to the HIIQ staking contract in order to increase yields for HIIQ stakers.
  5. I propose that the BrainDAO Treasury max-lock-renew its veFRAX position once every 30 days in order to maximize the BrainDAO’s veFRAX voting power and yield.

By approving this proposal, or one like it, before the FXTL conversion event goes live, the BrainDAO can benefit from added investor interest in IQ due to the high probability of veFRAX emissions and yields creating a sustainable boost in the value of IQ in the near future.

3

I recently learned that FRAX shifted its FXTL conversion policy to enable conversions directly to liquidatable FRAX. The BrainDAO is probably better off just selling its FRAX rather then staking it.

@admin please delete this topic.

4

What is the difference between FXTL and Vefxs?

I’m all about moving forward over idleness.