Frax Proposal Would Allow Early frxETH Redemptions With 4% Penalty

Frax governance is discussing a proposal that would allow early redemptions from locked Ethereum pools, but with a 4% penalty fee routed to the Frax treasury. The proposal is still in the temperature check stage, so it has not been implemented. But it raises a useful question for any DeFi protocol with locked products: how much flexibility should users have when they want out early? Locked pools can help protocols manage liquidity and align incentives. Users agree to keep assets committed for a