Summary:
The bentCVX/CVX pool has been imbalanced at ~5/95 and Bent would like to increase incentives to arb this imbalance, and further support low slippage trades at-near peg.
Background:
Bent allows users to stake Curve LP tokens, they are then staked in Convex (by the Bent Protocol), and stakers benefit from an additional return paid with their native token.
bentCVX is the token representation of CVX, bentCVX earns concentrated yield in the form of CVX tokens from: Native Protocol APR, Platform fees and Incentives (Votium)
Bent Finance has ~637,000 $CVX locked into the platform at the time of writing. (see DAO CVX holdings at https://daocvx.com)
Motivation:
The bentCVX Curve pool provides liquidity for users when they require it. Sometimes it is also more beneficial to enter the bentCVX ecosystem via the Curve pool rather than a CVX deposit due to pool imbalances.
Lowering the “A” parameter will increase incentives to arb any imbalance in this pool and is expected to also increase trading volume and result in more Curve fees.
Other protocols such as StakeDAO have had success with the A factor of 25 on their sdCRV/CRV pool resulting in strong trading volumes and peg balance.
If passed, the update to the bentCVX pool will prepare the pool for the new product updates and integrations currently on-going.
Specification:
- Reduce the “A” parameter from 50 to 25.
For:
Increase the “A” parameter to increase arbitrage, to improve the pool balance and generate additional curve fees for veCRV.
Against:
This is a stable pair with other, non-Curve, exchange avenues and pool imbalances are acceptable.