FIP 06 - Change the FXN allocation for weETH and xweETH Stability Pools


We have recently launched a new yield strategy, arUSD (Read more about arUSD here).

FXN liquidity mining emissions are controlled by veFXN voting. Currently, rUSD Stability Pools gauge emissions are split 50%-50% between weETH and xweETH Stability Pools. With the successful launch of arUSD, we observed an increase in the weETH Stability Pool, which we expect to continue. Therefore, we propose changing the allocation to 75%-25% in favor of the weETH Stability Pool.


arUSD is the tokenized version of the rUSD weETH Stability Pool vault from Convex Finance. The ETH and FXN yield is swapped for more rUSD, which is reflected in the index growth.

We propose reducing the xweETH Stability Pool’s allocation from 50% to 25% and increasing the weETH Stability Pool’s allocation to 75%, starting from epoch 9 (4th July 2024). This change is intended as a temporary measure, though it is not bound by a specific timeline.


The key reason for this change is the continued increase in the weETH Stability Pool deposits since the launch of arUSD. arUSD has attained almost $2M TVL in less than a week since its launch. Currently, there is $2.5M in the weETH Stability Pool with a yield ranging between 9%-18%, and $1.1M in the xweETH Stability Pool with a yield ranging between 16%-34%. We believe the growth of arUSD will continue, increasing the TVL in the weETH Stability Pool and potentially decreasing rewards for depositors. Changing the rewards allocation between the two Stability Pools will support the increased amount of deposits into arUSD, maintaining a high APY.


If approved by governance, the rewards allocation for the xweETH Stability Pool will be reduced to 25%, and the weETH Stability Pool will be allocated 75% of the gauge emissions for each epoch starting with Epoch 9 (4th July 2024). This change aims to support and stabilize yields in the weETH Stability Pool. The new allocation will remain in effect until a governance decision to change it is passed.

  • Yes, I agree to allocate 75% of FXN to weETH Stability Pool
  • No, leave them as they are
0 voters