Gamma partners with Frax Finance and Convex Finance to manage the FPI-FRAX Uniswap v3 pool on Optimism
We are pleased to announce that our proposal to add the Gamma FPI-FRAX 0.05% Uniswap v3 pool as a Frax gauge has passed! Liquidity providers of this pair will also be able to stake their LP positions on Convex to earn boosted FXS rewards. This pool will be managed on Optimism, bringing more liquidity, market coverage, and trading volume for FPI and FRAX to the Optimism ecosystem. The addition of the Gamma managed Frax gauge was widely supported by both the Frax and Convex communities with 27 million FXS votes in favor of the proposal on Frax and 9.6 million CVX votes in favor on Convex.
Frax Finance is the first fractional-algorithmic stablecoin protocol which is currently implemented on Ethereum and 12 other chains. The Frax ecosystem has 2 stablecoins: FRAX (pegged to the US dollar) & FPI (pegged to the Consumer Price Index).
Convex Finance strives to optimize opportunities for liquidity providers on Frax by allowing them to earn trading fees and boosted FXS rewards for their LP positions when staking Frax LP tokens on Convex Finance.
During a bear market condition in crypto, the inflation-indexed stablecoin of FPI and the low impermanent loss pair of FPI-FRAX offers a compelling yield-bearing strategy for Gamma liquidity providers. They will be able to earn trading fees from FPI-FRAX on Uniswap v3 as well as earn boosted FXS rewards by staking their liquidity positions on Convex and Frax. Furthermore, the low gas fee environment of Optimism will make this pair even more attractive for all LPs.
We are excited for this partnership with Frax Finance and Convex, and we believe that there will be many future opportunities for collaboration with these protocols. We are currently working with the Frax tech team on integration, and we will make an announcement when the FPI-FRAX pair will be ready for depositing on Optimism. Thank you to all our respective communities for making this a possibility!
