Summary:
Liquidity provider tokens of curve do already exist in the form of yCurve, susdCurve, paxCurve, etc. Once these are deposited into the gauge, the LP does not receive an additional LP token. This is different from e.g. the yCurve vault of yearn.finance where you receive an additional LP token in the form of yyCurve (stable coins) or yETH (Ethereum). Other DeFi apps (e.g. Cream.finance) are already beginning to support these additional LP tokens and accept them as collateral on their platforms. The motivation of this proposal would be to provide LPs with the opportunity of using the newly generated LP tokens as collateral on other platforms.
Abstract:
Add LP tokens for liquidity deposited into the gauge pools
Motivation:
As described above, some DeFi apps (e.g. Cream.finance) are already beginning to support LP tokens and accept them as collateral on their platforms. Currently this is the case for the yearn.finance yCRV and yETH vaults. Currently you can take advantage of the CRV distribution via curve.finance (receiving CRV) or yearn.finance (receiving yCRV), however only on yearn.finance you are able to collateralize your LP tokens, which shifts the overall incentive to using the yearn vaults in my opinion. Providing LP tokens to people who deposit directly into the curve gauges, would even out this potential advantage.
For:
Provide the ability to use the gauge LP tokens as collateral on other platforms. Evening out the potential advantage of the yCRV vault of yearn.finance.
Against:
Poses additional risks for the LPs themselves but this is already the case for LPs who provide liquidity via the yCRV vault, who might also be using their LP tokens as collateral.
