(Posting on behalf of a member from Curve’s telegram channel, this is not my own proposal)
This proposal aims to increase on-chain liquidity for CRV and use cases of veCRV by creating a new gauge that rewards Uniswap/Sushiswap/Mooniswap LPs (CRV:ETH).
(1) Create a new gauge for Uniswap LPs to deposit LP token.
(2) Direct 10% of daily inflation to that gauge (76k CRV per day) or based on weekly gauge weight vote
CRV is currently facing strong selling pressure due to lack of on-chain liquidity. Currently, there is around 650k USD worth of liquidity on Uniswap. And these LPs taking a lot of risk, and get zero CRV reward. We should create a gauge for them deposit their LP tokens to earn CRV, this will also encourage daily mined CRV to be added into Uniswap to earn more trading fees (currently around 500% APY). Yes, Uniswap LPs for CRV:ETH are earning high APY.
Rewarding Uniswap LPs will likely increase CRV’s on-chain liquidity, and stabilize CRV’s price, because miners can now earn both fee from Curve and Uniswap.
Instead of selling CRV, we now have an additional place to use those sweet CRV, by providing liquidity on Uniswap.
Reward Uniswap LPs with CRV by creating a new gauge for them deposit LP token.
The implementation of this proposal will require a creation of a new gauge.
Aligns interest across $CRV stakeholders and create incentive to add on-chain liquidity for $CRV to stabilize the price.
Will add a signal vote later
There’s also currently 1m USD worth of liquidity on sushiswap.
We won’t be earning admin fees from people providing liquidity on Uniswap.
Though it a great alternative for the people suggesting to burn inflation.
Awesome that you can get 2.5x boost on this too.
That’s a curious proposal!
Besides this pool has enormous fees, so admin fees would be great. And… It is possible to apply Curve admin fees to Uniswap (on withdrawal)!
One just needs to calculate profit between deposit and withdrawal on-chain. This is quite easy with Uniswap math
It is very good for Retail Investors and if we should increase the % 10 to 25 it’s much better
Why we won’t earn Admin fee from that Propsel ? Correct me if I’m wrong but it would have an affect of Admin fees … Daily Trading Volume would increase and so Admin Fee.
It is possible to charge admin fee on top of Uniswap but that’d happen at withdrawal time. It’d actually be quite sweet.
That way, we don’t feed other project’s liquidity with our tokens for free
Good stuff , I’m in favor. Cheers
I’m already contributing in Uniswap pool, so definitely in favor.
When 2M curves are being added to the circulating supply everyday, how will this proposal help to overcome/stabilize the selling pressure?
Why would a Curve LP want to pay a non-Curve LP?
CRV isn’t tanking because of “on-chain liquidity” issues. It’s tanking because it was over-priced the last couple months due to DeFi hype and the inflation schedule that the founders/investors chose.
The fully diluted market cap still sits around $3 billion. How many companies worth $3 billion only have like 6 devs on their payroll? If you want the price of CRV to increase, think of something productive to do… like hire more devs to improve the website UI for end users.
This is a great proposal, but would it not be much more beneficial for the whole ecosystem if the LP rewards are given as a 4-year locked veCRV (assuming that is technically possible)?
LPs would have a long-term commitment to the protocol and will benefit from their growing pile of veCRV.
10% of the daily inflation will be locked up going forward, so less CRV making it onto the market, pushing the price down.
So this way we kill 2 birds with 1 stone so to speak: decreased sell pressure, increased liquidity.
I would also like to see an additional percentage of LP rewards coming from founders/investors. If 10% of daily inflation is to be used for rewarding CRV LPs, an additional 5-10% commitment should come from founders/investors, especially founders.
A huge portion of newly released daily CRV supply is coming from ‘founders’ distribution!
I’m against. CRV is not suffering from a lack of liquidity. You can buy/sell 10,000 CRV for less than 1% slippage. It’s suffering from a lack of buyers. This is a great chance for picking up CRV cheap! I know I’m buying at these prices. A lot of these price propping proposals seem to imply a lack of confidence in the intrinsic value of CRV.
You all should be happy to play the long game and be happy to collect veCrv rewards in greater quantities of CRV (suppressed prices). These tokens should be quite valuable in the future if we’re able to keep the liquidity and volume up on Curve. Keeping CRV rewards for Curve LPs will help keep the platform healthy.
All I hear is a new avenue for generating cash flow to veCRV holder with an LP withdrawal fee and for that reason alone, I’m in
Based on what evidence are we making the assumptions regarding the positive effects of this proposal?
in my assessment incentivizing pool 2 benefits the short term oriented whales in providing exit liquidity. I have not seen the desired results described in the OP in different protocols that followed the same path.
Additionally if uniswap LPs are currently receiving 500% apy at what points does the APY become high enough to warrant the assumptions regarding the positive effects?
Sushiswap is also currently running a triple digit APY for the CRV/ETH pool.
If the goal is to increase liquidity further on top of these incentives what exactly is the target number to expect “stability of CRV price”?
I would like the team to elaborate further with some numbers/evidence to back up the claims.
This is community proposal, perhaps you can have a read through this to understand what is proposed CIP#18 - Incentive for providing on-chain CRV liquidity