Remove alUSD gauge so the pool stop receiving CRV. As pointed out by community members, alUSD is collaterized by Yearn Vaults which make around 25% of their yield from dumping CRV. We would like to propose to remove the gauge from Curve as this essentially allows leveraged CRV farming via Alchemix as the Alchemix loaned is paid back using interest from Yearn vaults selling CRV to accrue interest without mentioning alUSD can also be deposited into Yearn vault leveraging the amount of CRV received.
This is somewhat of an unusual proposal and it will also be used as as a way to test community sentiment on having CRV receiving gauges on pools which source their yield from CRV. It’s also worth noting that Curve stable pools will likely become fully permisionless in the near future (like it already has for metapools) meaning the process to get listed and obtain a gauge will change although this is will be discussed at a later date.
Whilst we believe Yearn-type farming of CRV is fair game, we don’t think it should be incentivized by more CRV as it creates a negative loop for CRV.
Currently, the yvDAI has around $750m in TVL with approximately 25% selling CRV compounded via another $100m in the alUSD vault selling 100% CRV (and CVX).
alUSD Gauge: 0x9582C4ADACB3BCE56Fea3e590F05c3ca2fb9C477