Proposal to Launch DOLA/FraxPyusd Fed

Forum Post: https://forum.inverse.finance/t/launch-dola-fraxpyusd-fed/395/1

Summary

This proposal seeks to launch an AMM Fed that is directed at the Curve DOLA/FraxPyusd liquidity pool on Curve, staking the LP tokens on Convex to earn CRV and CVX rewards. There are a few minor code improvements from the previously used Convex Fed, that was pointed at the DOLA/FraxBP pool on Curve. This proposal will also remove the current Convex Fed as a minter, meaning that it can no longer increase its supply.

Background

Frax have migrated the majority of their protocol-owned stable liquidity from Frax/USDC to Frax/pyUSD as of a couple of months ago, and are co-incentivization pools paired with the new FRAXPYUSD pool more generously than what is currently given to pools who pair with the FraxBP. In order to take advantage of this capital efficiency, the TWG has commenced a slow migration of liquidity incentives from the DOLA/FraxBP towards the new DOLA/FraxPyusd pool. There are large discrepancies between the reward APR between the two pools, and thus an AMM Fed is requested in order to help scale the DOLA side of the new pool up, whilst capturing some of the liquidity rewards back to the DAO.

Code Changes

• supplyCeiling - A DAO controlled supply ceiling for the amount of DOLA that this fed can mint into circulation, similar to the market ceilings on the FiRM Fed. This allows the DAO to control the AMM Fed's exposure. This Fed will start with an unlimited supplyCeiling, with a more precise ceiling able to be set in a later proposal.
• burnDolaSupply - adjusted to give the ability to burn a specific amount of DOLA, rather than the entire dolaSupply
• emergencyWithdraw - Unstakes and withdraws LP tokens to the DAO treasury, useful in emergency situations where withdrawing DOLA single sided does not work. Can only be called by governance.
• claimRewards - replacing the previous takeProfit function, made more gas efficient by removing the unused harvestLp boolean
• claimOther - gives the ability to claim any additional rewards, other than CRV or CVX, to the treasury
• Changed governance transfer to use the set - claim pattern to avoid loss of control of the fed due to a faulty proposal

On-Chain Actions

• Remove Convex Fed (DOLA/FraxBP) as a DOLA minter
• Add DOLA/FraxPyusd Fed as a DOLA minter