Proposal to add frxUSD/FXB2027 Pool on Fraxtal to the Gauge Controller

Gauge Proposals
1

Summary:

This proposal seeks to add a Curve gauge for the frxUSD/FXB2027 pool on the Fraxtal chain. The pool enables swaps between Frax’s payment stablecoin frxUSD and its zero-coupon tokenized bond FXB2027. Adding a gauge would direct CRV emissions to this pool, incentivizing deep liquidity and making fixed-rate DeFi infrastructure more accessible and efficient.

References/Useful links:

Protocol Description:

  • frxUSD is a fiat-redeemable stablecoin fully backed by institutional-grade reserves (e.g. BlackRock’s BUIDL, Superstate USTB). It is always redeemable at $1 through a system of enshrined custodians and is designed for payments and DeFi use.
  • FXB2027 is a zero-coupon bond issued by Frax, redeemable at full face value ($1) on its maturity date in 2027. It does not pay periodic interest and instead trades at a discount to its redemption value, enabling fixed yield for holders. FXBs are native DeFi fixed-income primitives.

This Curve pool allows for deep, low-slippage swaps between frxUSD and FXB2027, creating an on-chain bond market directly accessible via stablecoin rails.

Motivation:

  • Deep liquidity for FXB2027 will make Curve the primary secondary market for tokenized on-chain bonds, further expanding its position as the backbone of stable and yield-bearing asset liquidity.
  • Curve emissions will bootstrap FXB adoption, allow for rate discovery, and support treasury management strategies for both users and DAOs looking to deploy LFRAX into fixed-duration instruments.
  • This aligns with Curve’s strategic interest in supporting institutional-grade primitives like frxUSD and yield-bearing assets (e.g., sfrxETH, stETH, etc.).

Gauge Proposal: