Deploy a "tricrypto3" pool (wBTC + wETH + FRAXBP)

GM everyone. My name is cryptohuntz (Twitter) from Alphaverse DeFi Fund (Twitter). I have floated the idea of a “tricrypto3” pool in the Frax and Curve telegram groups and the community has seemed to like the concept so I decided to bring it here. Hope the community likes it! :smiley:

Summary:

This is a proposal to create a new tricrypto pool, called “tricrypto3”, which will consist of wBTC + wETH + FRAXBP.

Abstract:

As @samkazemian elegantly laid out in his original “Deploy a ‘FRAXBP’ Pool…” proposal from May 2022:

“The Frax Protocol has been a steadfast Curve+Convex ally for well over a year. FRAX’s Curve AMO has proven to be a very important innovation in DeFi & stablecoins. The AMO smart contract essentially keeps the Curve pool balanced+managed entirely onchain deterministically & allows the FRAX protocol to deploy its protocol owned liquidity to Curve, earn tx fee revenue from it, earn CRV+CVX from it, and allows FRAX to participate in the greater Curve ecosystem.”

“Additionally, FRAX has brought a lot of revenue and efficiency gains for veCRV and vlCVX holders. For the first time in Curve history, there is a stablecoin protocol that can earn fees, yield, and sustainably distribute this back to veCRV+vlCVX holders through “bribes” (aka gauge incentives on Votium). FRAX has been distributing millions of of dollars every voting period back to the Curve+Convex community sustainably for many months.”

“This symbiotic system continues to bring liquidity to Curve and helps power a yield engine that has benefitted both FRAX, Curve, and Convex over competing AMMs like Uniswap, Balancer, etc.”

Motivation:

The FRAXBP is quickly becoming one of the pillars of the Curve ecosystem and Frax Finance plays an integral part. For example, (1) the fraxusdc pool currently has higher TVL than frax+3pool (they are at ~$1.4bn combined), and (2) there are now 15 factory pools using FRAXBP with over $1.5m TVL (and 20+ factory pools overall). It only feels right to pair the two main assets in the crypto ecosystem (ETH, BTC) with FRAXBP. This will also give Curve users an option if they want to participate in something like the tricrypto2 liquidity pool without any exposure to USDT.

Specification:

This proposal requires the Curve core dev team to launch the “tricrypto3” pool, as this cannot be done from the factory contracts as you can only pair 1 token with the meta fraxbp.

For:

-This pool would give users the option to get exposure to a pool with 1/3 ETH, 1/3 BTC, and 1/3 stablecoins without having exposure to Tether (USDT).

-This pool would be safe and highly reliable and positive sum commitment to every stakeholder in the ecosystem from Curve, Convex, and Frax.

-This pool would only be additive to the Curve ecosystem. Perhaps some users migrate from tricrypto2 to tricrypto3, but there is no reason they would leave Curve. It only has the potential to bring in new participants and liquidity.

Against:

I don’t see why anyone would be against this proposal or this pool.

Poll:

Looking forward to reading the discussion on this!!

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Just FYI, Frax isn’t bribing veCRV for a while now. So whatever they are bribing, it is purely to vlCVX holders. I think it is safe to assume that their CVX bags are larger than CRV bags.

Just a month ago they were saying (basically) that veCRV holders are like their family + it is profitable for them as well to bribe veCRV but still they’ve stopped.

vlCVX isn’t more profitable for bribing as numbers are here:

https://twitter.com/HubertX13/status/1582057417491111938

Yes, they are involved in curve’s ecosystem but for saying one thing and doing another, I’m gonna vote no.

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