Proposal to add pxCVX/CVX to the Gauge Controller

Summary:

Proposal to add the pxCVX/CVX pool to the Gauge controller to enable users to assign a gauge weight and mint CRV.

References/Useful links:

Website: https://pirex.io/

Documentation: Pirex - [REDACTED] Cartel

Twitter: https://twitter.com/redactedcartel

Discord: [REDACTED]

Dune: Dune

Protocol Description:

Pirex is a protocol incubated by Redacted Cartel which creates liquid wrappers that allow for auto-compounding and the tokenisation of future yield/vote events. pxCVX (Pirex vlCVX) is a vlCVX liquid wrapper which has the goal of increasing liquidity, yield and utility for CVX holders. pxCVX gauge votes will focus on maximising returns to pxCVX holders and not to bootstrap other Pirex or Redacted products.

Describe the proposed assets(s)

pxCVX is a ‘pure’ liquid wrapper — each pxCVX is backed by 1 vlCVX and all of the value (minus fees) from that vlCVX is passed onto the pxCVX holder. vlCVX is vote-locked Convex: CVX locked with the Convex protocol for up to 17 weeks in exchange for governance voting rights and protocol emissions.

Motivation:

There are two ways to exit pxCVX positions: (i) swap pxCVX for CVX via the pxCVX/CVX LP on Curve (seeded and maintained by Redacted); and (ii) burn pxCVX to redeemCVX. As all pxCVX is backed 1:1 by vlCVX, unlock time is dependent on the availability of unlocking vlCVX in Pirex. There is an unlock fee which scales inversely with unlock time, which helps to range bound the pxCVX/CVX LP peg.

A Curve gauge for the pxCVX/CVX pool will allow liquidity in the pool to be incentivised which will help to maintain the pool’s peg more tightly.

If this gauge proposal passes, the plan is that only the vlCVX in relation to the pxCVX in the Curve LP would be used to vote for the gauge. Therefore the overall yield on a LP position in the pool would be lower than holding pxCVX outside the pool. All vlCVX in relation to pxCVX not in the Curve LP would be used to vote on other gauges.

Specifications:

  1. Governance:

At this point, there is no separate governance for Pirex. Right now, Pirex is under Redacted’s governance which is currently off-chain using Snapshot. The multisig address is: 0xA52Fd396891E7A74b641a2Cb1A6999Fcf56B077e.

  1. Oracles:

No oracles are currently used.

  1. Audits:

Pirex core contractshave been audited by security firms Omniscia and Keyko:

The core contracts have various permissioned methods for configuring contract parameters (e.g. protocol fees) which can only be called by their owner: the Pirex multisig. Additionally, there are emergency procedures in place to handle a range of scenarios (e.g. a Convex CvxLocker contract upgrade which removes methods used by the Pirex protocol) which requires the participation of both the Pirex multisig and an executor multisig (a separate multisig comprised of reputable actors within the DeFi space) to see through.

  1. Centralization vectors:

Pirex uses a 3of 7 multisig which has the ability to do the following:

  • Call permissioned methods for the protocol’s core contracts; and
  • Manage multisig assets received from protocol fee distributions
  1. Market History:

pxCVX was launched on 31 May 2022, and, to date, has maintained peg.

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