No such thing as double-dipping. Curve incentivises liqudity by paying CRV per amount of liqudity provided. Projects like Alchemix or abracadabra essentially are leverage LPing Curve. They provide more liquidity, so they get more rewards. There is no double-dipping as they get their fair share of rewards based on how much liquidity they provide.
This is a reductionist way to look at an issue. This is why finance people cut everything when they compare two numbers and then wonder why their companies fall apart.
Doing this will slowly allow competitors to see a space that needs to be filled. The benefit to crv holders on certain pools by changing this will be dwarfed by the market share stolen by competitors that DO offer rewards. What will crv holders do then?
I wouldn’t call Citizens those pools whos LPs do not hold veCRV. Because they just come, dump CRVs they got for free(for few ‘‘trading’’ fees).
Answering in general,
Those metapools, who dump CRV 100% shall have gauge weight equal to their share of TVL/2 (their 3Pool part). That would be fair treatment and yes it is achievable by meaningful weight voting.
People could swap alUSD for DAI and provide to any gauge and double dip just as much. So long as you can borrow against a curve position you can leverage farm.
It wont be long until you can borrow against convex positions. This proposal does not accomplish anything regarding double dipping because the same amount of CRV rewards are released, and it doesn’t matter which pool is getting them as debt can be converted into any qualifying pools assets.
This is literally the purpose of proposal boards. No one gets to decide “this is a dumb idea, no vote for you!” If it’s a bad decision, then it is brought to light and we all benefit since we can all understand why it’s bad. And vice versa.
My faith in humanity has dropped slightly today just due to the number of people that are incensed that this is even up for discussion. This is literally the point of having governance set up this way.
people would buy alUSD w/DAI to redeem in transmuter 1:1 or repay debt
people would buy DAI w/ alUSD to double dip farm curve (oh noes spooky).
If I can trade alUSD, then I can trade alUSD to an asset I can deposit in Curve. alUSD doesn’t even farm curve under the hood, the staked DAI in alchemix does. So I can stake DAI in Alchemix, earn from Curve. Borrow alUSD and trade for DAI, then stake that in a gauge.
Now, without holding any alUSD I’m double dipping CRV rewards. This proposal does nothing to dissuade that.