# Proposal: Add FXN gauge to frxUSD/fxUSD **URL:** \ **Category:** f(x) Protocol Improvement Proposals\ **Created:** [November 8, 2025, 9:44pm UTC](https://forum.aladdin.club/t/proposal-add-fxn-gauge-to-frxusd-fxusd/620 "2025-11-08T21:44:13Z")\ **Posts on this page:** 2\ **Page:** 1
**Author:** ![nader.frax](https://yyz1.discourse-cdn.com/flex027/user_avatar/forum.aladdin.club/nader.frax/32/200_2.png) [@nader.frax](https://forum.aladdin.club/u/nader.frax)\ **Post date:** [November 8, 2025, 9:44pm UTC](https://forum.aladdin.club/t/proposal-add-fxn-gauge-to-frxusd-fxusd/620/1 "2025-11-08T21:44:13Z")
## **FIP-XX: Add FXN gauge to frxUSD/fxUSD** ## Introduction Frax is proposing to add a FXN gauge to frxUSD/fxUSD. Frax intends to direct its voting incentives for FXN to this pool, as well as the available yield from frxUSD. This proposal seeks to establish a synergistic relationship between Frax and f(x) protocol, which can lead to other cooperations down the line. * * * ## About frxUSD: Description frxUSD is a fiat-redeemable stablecoin issued by the Frax Protocol, fully backed 1:1 by tokenized U.S. Treasury funds managed by institutional custodians like BlackRock and Superstate. Its bankruptcy-remote structure ensures unparalleled stability, and it is mintable/redeemable directly through licensed partners and soon directly on the frax[.]com interface itself to any user in the world (fiat wires will require KYC/AML). frxUSD is mintable/redeemable 1:1 for USDC, and cash directly from the issuer, Frax Protocol. Additionally, frxUSD offers a unique revenue-sharing mechanism, allowing up to 100% of its underlying T-Bill yield (currently 4.1%) on frxUSD assets in the frxUSD/fxUSD pool to be used for incentives. * * * ## Useful Links - frxUSD Official Documentation: [https://docs.frax.com/frxusd](https://docs.frax.com/frxusd) - frxUSD Official Website: [https://frax.com/frxUSD](https://frax.com/frxUSD) - frxUSD Transparency Page: [https://frax.com/transparency](https://frax.com/transparency) - frxUSD Defillama: [https://defillama.com/stablecoin/frax-usd](https://defillama.com/stablecoin/frax-usd) - frxUSD Contract Address: [0xCAcd6fd266aF91b8AeD52aCCc382b4e165586E29](https://etherscan.io/token/0xcacd6fd266af91b8aed52accc382b4e165586e29) - Twitter: [https://twitter.com/fraxfinance](https://twitter.com/fraxfinance) - Github: [https://github.com/FraxFinance](https://github.com/FraxFinance) - Audit Reports: [https://docs.frax.com/protocol/security/audit](https://docs.frax.com/protocol/security/audit) - Bug Bounty: [Bug Bounty | Fraxtal Docs](https://docs.frax.com/protocol/security/bugbounty) * * * ## Background & Motivation The fxUSD stablecoin relies on efficient, deep on-chain liquidity to maintain a tight peg to USD. While existing fxUSD pools currently utilize USDC and other stable assets, integrating frxUSD offers unique advantages: 1. Direct Fiat-Backed Parity: frxUSD is fully backed by short-duration U.S. dollar assets and redeemable 1:1 for USDC or fiat through authorized custodians. Pairing fxUSD with frxUSD provides a redemption path that more closely reflects real-world USD liquidity than volatile stable-to-stable pairs. 2. Shared Incentives & Governance Alignment: Frax Finance intends to direct FXN voter incentives toward this pool, helping f(x) bootstrap deeper liquidity while Frax benefits from higher frxUSD velocity. Over time, Frax plans to allocate T-bill yield revenue from frxUSD reserves to sustain liquidity rewards, creating a more organic, yield-funded incentive model rather than short-term emissions. 3. Mutual Ecosystem Growth: The frxUSD/fxUSD pool deepens integration between Frax and f(x), positioning it as a joint liquidity base for future shared stablecoin infrastructure and cross-ecosystem settlements. * * * ## Proposal Details - **Pool:** Curve Pool – [frxUSD/fxUSD](https://www.curve.finance/dex/ethereum/pools/factory-stable-ng-610/deposit)(Ethereum) - **Action:** Add this pool to the f(x) Finance gauge system. - **Objective:** Make the pool one of the official peg-keeping and liquidity venues for fxUSD. - **Incentives:** ---
**Author:** ![Aero828](https://avatars.discourse-cdn.com/v4/letter/a/f08c70/32.png) [@Aero828](https://forum.aladdin.club/u/Aero828)\ **Post date:** [November 11, 2025, 11:38am UTC](https://forum.aladdin.club/t/proposal-add-fxn-gauge-to-frxusd-fxusd/620/2 "2025-11-11T11:38:32Z")
IMO this is a great idea. Frax has done a lot of work to build a regulatory compliant stablecoin and an all-in-one crypto banking solution, and partnering with fxn could be mutually beneficial to increase visibility and utilization of both stablecoins.