Summary:
The bveCVX/CVX pool has been imbalanced at ~70/30 and Badger would like to increase incentives to arb this imbalance at an earlier stage
Abstract:
Badger is a DAO dedicated bringing BTC to DeFi and we provide incentives for users to lock Convex in our vaults.
Motivation:
bveCVX is a Badger Locked Convex. It is always redeemable 1:1 for the Convex tokens when they unlock from the Badger vault. This Curve pool provides liquidity when there are no remaining unlocked tokens to be withdrawn. It is also, sometimes, more convenient or efficient than a vault withdrawal.
Lowering the “A” parameter will increase incentives to arb the imbalance in this pool and is expected to also increase trading volume and result in more Curve fees.
Specification:
Reduce the “A” parameter from 100 to 40
For:
Increase the “A” parameter increase arbitrage, to improve the pool balance and generate additional curve fees
Against:
This is a stable pair with other, non-Curve, exchange avenues and pool imbalances are acceptable.
Poll:
Post a link to your proposal if it’s already been created