Summary
Proposal to add the Polygon asdCRV/CRV factory pool to the Gauge Controller to enable users to assign gauge weight and mint CRV. Concentrator is a farm-and-hold yield optimizer that helps users automatically harvest yields and swap (concentrate) them into the best blue-chip DeFi tokens. asdCRV is an auto-compounding wrapper on sdCRV with yields provided by sdCRV single staking. One asdCRV represents a deterministic and increasing number of sdCRV in the vault, irrespective of whether that asdCRV is held on mainnet or bridged to another chain. Holding asdCRV on other chains (like Polygon) allows users to earn Stake DAO mainnet yields without farming on mainnet, simply by buying and holding asdCRV. asdCRV is instantly redeemable for sdCRV with no slippage in the mainnet asdCRV contract.
Concentrator and Curve’s ecosystem protocols, particularly Stake DAO in the case of asdCRV, have a highly symbiotic relationship. The auto-compounding feature of asdCRV creates a consistent demand for sdCRV, thereby helping to maintain its peg. In instances where the peg is already close to 1:1, asdCRV even directly locks CRV for sdCRV. Moreover, the existence of the asdCRV liquidity pool on Polygon offers a significant advantage to Curve by giving users a compelling reason to hold their CRV on Polygon rather than selling it.
References
Concentrator website: https://concentrator.aladdin.club
asdCRV Polygon token address: 0x75289388d50364c3013583d97bd70ced0e183e32
Documentation: Concentrator - AladdinDAO
Medium: Concentrator – Medium
GitHub: https://github.com/AladdinDAO/aladdin-v3-contracts/tree/main/contracts/concentrator
Twitter: https://twitter.com/0xconcentrator
Discord: Discord
CRV/asdCRV https://curve.fi/#/polygon/pools/factory-crypto-210/deposit
Pool: https://polygonscan.com/address/0x5d8c2b31e80a35e211d51e62b1c7fb70322cbf25
asdCRV Bridge: Layer Zero
Protocol Description
Concentrator is a yield optimizer built around the idea of positive sum farm-and-hold yield farming. There are two types of concentrator vaults: harvesters and compounders. At present there are three compounder vaults, and many harvester vaults. Each harvester vault is paired with one of the compounder vaults. Harvest vaults claim all claimable yield associated with the underlying harvester asset and swap them appropriately to deposit into the paired compounder vault. Users deposit assets in harvester vaults and use those yields to earn the most blue-chip compounder tokens. Alternatively or in addition, users may deposit directly into the compounder vaults.
The compounder vaults each provide an increasing share of a specific blue-chip DeFi token, with growth coming from autocompounding its yields. Currently Concentrator offers three such compounder vaults: aCRV, aFXS and afrxETH. aCRV is backed by cvxCRV, with autocompounding yields derived from Convex cvxCRV staking. aFXS is backed by fxs-cvxFXS LPs, with autocompounding yields derived from Convex vault/Curve gauge rewards. Finally afrxETH is backed by frxETH-ETH LP shares, with yields coming from a Convex Frax private vault that is automatically managed by Concentrator.
Although there is a lot of room for expansion in the future, currently all harvester vaults are based on Convex vaults. A wide variety of Convex vaults are offered as harvesters including various stable LP vaults, tricrypto, and many others. New vaults are regularly deployed based on user requests or new opportunities. Most recently this includes the launch of asdCRV, compounding Stake DAO’s sdCRV token.
Concentrator harvesters allow users to hold one asset, but use its yield to earn a completely different one. For example, the most popular vault on Concentrator allows users to hold a stablecoin (FRAX-USDC LPs) but earn yields in aCRV. In the future, Concentrator vaults may execute more sophisticated strategies with the afrxETH compounder (which manages a rolling lockup to optimize yields) providing an example of the types of things that are possible.
Concentrator is a yield optimization platform that operates on the principle of positive-sum farm-and-hold yield farming. It consists of two types of vaults: harvesters and compounders. Currently, there are multiple harvester vaults and four compounder vaults. Each harvester vault is paired with at least one compounder vault. The harvester vaults claim all available yield from the underlying asset and swap them accordingly to deposit into their paired compounder vaults. Users can deposit assets into harvester vaults and use the resulting yields to earn high-value compounder tokens. Alternatively, users can also directly deposit assets into the compounder vaults.
The compounder vaults offer an increasing share of particular blue-chip DeFi tokens, and their growth is fueled by autocompounding the generated yields. Currently, Concentrator provides four compounder vaults: asdCRV, aCRV, aFXS, and afrxETH. asdCRV is backed by sdCRV and generates autocompounding yields from Stake DAO’s sdCRV staking. aCRV is backed by cvxCRV and derives autocompounding yields from Convex’s cvxCRV staking. aFXS is backed by fxs-cvxFXS LPs and generates autocompounding yields from Convex vault/Curve gauge rewards. afrxETH is backed by frxETH-ETH LP shares, with yields managed by Concentrator through a Convex Frax private vault. Concentrator’s harvester vaults enable users to hold one asset while earning yields in a completely different asset.
asdCRV’s compounder TVL has increased at a steady pace, becoming the largest compounder by TVL! As soon as the contract audit will be done (currently undergoing), asdCRV compounder will be added to the majority of harvesters.
Motivation
For asdCRV to be useful on Polygon it must be available to swap natively there, and so Concentrator set up a Curve liquidity pool in asdCRV/CRV and seeded it with capital. Enabling gauge rewards would increase the visibility and depth of that pool and would be very beneficial to the ecosystem. Gauge rewards in that pool in particular will be very important since users who wish to provide liquidity there must of course hold a mixture of asdCRV and CRV and so will earn yields only on their asdCRV portion. CRV emissions can help make up this shortfall.
Once Polygon asdCRV/CRV is added to the gauge controller, Concentrator and Stake DAO will have an additional way to participate in bribe markets, which helps increase the economic value of CRV and STD governance.
Specifications
Governance: The asdCRV token was deployed by the Aladdin core team as part of Concentrator’s growth plan. Aladdin continues to develop and administer Concentrator, progressively decentralizing governance power to veCTR holders. The Concentrator treasury is controlled by a 6/9 multisig wallet.
Oracles: Concentrator (including asdCRV) does not rely on oracles.
Audits: All Concentrator products have been audited. Relevant reports are:
Market History:
asdCRV is the compounding vault with the highest growth offered by Concentrator. asdCRV represents a deterministic and increasing number of sdCRV staked on Stake DAO. At the time of writing this proposal, the index is ~1.09, meaning each asdCRV is redeemable for 1.0 sdCRV. asdCRV does not trade on a secondary market on mainnet, but does have liquidity pool paired with CRV on Polygon. In principle the price of asdCRV off mainnet should be equal to the redeemable mainnet value of asdCRV plus some premium for bridging, and should be held relatively stable and have a steady flow of new asdCRV delivered by arbitrageurs.