Summary and Abstract
This proposal aims to whitelist the Liquity Treasury (Gnosis Safe), enabling it to lock CRV, participate in Curve gauge and governance votes, and benefit from the LP boosting. Unlike similar proposals, such as the recent Abracadabra’s mCRV, there will be no wrapper.
CRV tokens used for this process are not deposited by users. They are/were acquired on the markets (and might be farmed in the future). To date, Liquity purchased ~530K CRV, and further acquisitions are planned. \
- Whitelist Liquity’s Treasury contract in Curve’s SmartWalletList, in order to take part in the governance process and lock CRV.
- The available 530K CRV will be vote-escrowed for four years. The gauge voting power will be initially used 100% to support the LUSD pool.
- Further CRV acquired will be vote-escrowed for four years as well.
- The veCRV balance will also be used to partake in relevant governance votes for Liquity and might be used to boost self-owned liquidity in the future.
Introduction to Liquity
Liquity is a protocol offering interest-free leverage on ETH. The LUSD stablecoin, output of the system, offers some genuinely unique features, the leading one being the trustlessness of the whole Liquity protocol. In that sense, LUSD is one of the most resilient stablecoin and the most decentralized.
Project: https://liquity.org/
Twitter: https://twitter.com/liquityprotocol
Documentation: https://docs.liquity.org/
App (list of front-ends): Liquity | Frontends List - Use Liquity
Discord: Liquity
Liquity x Curve Finance
The Curve LUSD pool has been the main trading venue for LUSD almost since the protocol’s inception. It’s one of the stablecoin pools featuring the highest organic volume and APR. Thanks to the relatively high vAPY, the pool has enjoyed significant deposits and spontaneous gauge voting since its inception. However, to keep growing the pool and keep it balanced, the team is now taking a more active approach to supporting it.
While the LUSD Curve pool is the focus right now, other pools are being considered, such as a v2 pool for LQTY or pools related to an upcoming product.
Motivation
The LUSD Curve pool is among the top-performing pools volume-wise and often sees more daily volume than the MIM or FRAX pool, despite its lower TVL. If the Liquity treasury is whitelisted, this pool will be further supported with increased CRV emissions and potential bribes for gauge voters.
While Curve is a massive success as a stablecoin trading venue and DEX overall, we believe it’s essential for Curve to offer stablecoins with different risk profiles, as the currently most liquid stablecoins share similar shortcomings:
- Stablecoin models with centralization-related risks (USDC, USDT)
- Stablecoin models with censorship-related risks (DAI, FRAX, MIM)
- Stablecoins models with sizeable centralization, liquidity, design, and ethical issues (UST, USDD)
Liquity’s code is immutable, and no trust-required assets are used to back LUSD (ETH only), so its risk profile is vastly different. We believe that growing liquidity on alternative stablecoins is a net benefit for Curve in the long term.
Proposal
This proposal intends to allow the Liquity treasury (Gnosis Safe) to participate directly in the Curve Wars with no intermediaries by self-locking CRV. The gauge voting power obtained will initially be 100% dedicated to the LUSD pool. The treasury will also exert its governance voting power for the best interest of both Liquity and Curve Finance.
Specification
Curve DAO whitelisting the following smart contract to allow locking of CRV, gauge voting, governance voting and boosted LP rewards:
Liquity Treasury (Gnosis Safe):
0xF06016D822943C42e3Cb7FC3a6A3B1889C1045f8
Disclosure
I, TokenBrice, am one of the top French🦙 documenting the Curve ecosystem. I’ve also recently joined the Liquity team to help with growth and DeFi strategies.
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