Summary:
This proposal is to “unkill”/enable CRV incentives for the CNC/ETH Curve gauge. The vote to add a gauge for the CNC/ETH pool passed several months ago. However, as Conic was still under development, a gauge seemed premature. Hence, the CRV rewards for the gauge were killed in a subsequent vote. Conic is now very close to launch and the team believes that it would be an appropriate time to shutdown the current CNC rewards contract for stakers of CNC/ETH Curve LP tokens and migrate over to staking these LP tokens directly on Curve/Convex. This would allow current LPs to earn CNC (as extra rewards) in addition to CRV and CVX. Furthermore, CNC will be distributed via Votium to vlCVX holders.
Abstract:
The proposed change is to enable CRV rewards for the CNC/ETH gauge.
Motivation:
Conic Finance is a protocol that introduces the concept of Omnipools in the Curve ecosystem. Each Omnipool allocates single sided liquidity to different Curve pools based on target allocation weights. These target allocation weights are updated on a bi-weekly basis in a so-called Liquidity Allocation Vote (LAV). For a detailed overview of Conic, please refer to the whitepaper.
There are several reasons for why the Conic team believes now would be an appropriate time to activate CRV incentives. The Conic audit has been completed and the report will be published over the coming days. The initial LAVto determine the weight distribution for the Conic Omnipools will start this week and once this is completed, Conic is essentially ready to launch.
Currently CNC rewards are distributed to CNC/ETH Curve pool LPs that stake their LP token in the AMMStaker contract (the Conic rewards contract). This contract will be shut down as soon as CRV incentives are enabled. CNC rewards will then be distributed as extra rewards via the gauge, as well as paid out via Votium to vlCVX holders. It would be ideal if CRV incentives are enabled before launch, such that the current AMMStaker contract can be shut down properly (opposed to attracting more liquidity post launch and then requiring LPs to migrate to Curve/Convex).
Specification:
- Conic has been formally audited by Peckshield and the report will be published over the coming days.
- The Conic DAO has been very active over the past months, deciding on various parameters needed for launch in a total of 8 votes.
- Conic governance will initially occur through Snapshot. However, all on-chain protocol updates can be vetoed by a 3/5 emergency/veto multisig.
- The CNC/ETH Curve pool has been very profitable for LPs (weekly vAPY of 16.54%) and has already generated a good amount of trading volume.
For:
Conic is very close to launch and enabling CRV incentives just before launch would allow for a smoother transition for LP token stakers from the current Conic rewards contract to Curve/Convex. This would also allow for vlCVX holder bribes to go live as soon as CRV rewards are enabled.
Against:
One should wait until Conic has launched.