Proposals to add Convergence's gauges (3 in total)

Gauge Proposals
#1

Summary:
Dear Curve community,

We, at Convergence, just pushed 3 gauge proposals for the following pools:

References/Useful links:
• Website: https://cvg.finance/
• Documentation: https://docs.cvg.finance/
• Communities : https://twitter.com/Convergence_fi – Convergence

Protocol Description:
Before jumping into the proposal (or the docs), we kindly suggest reading this article that breaks down the entire protocol: Convergers, to the void!. Gm anon, | by Wireshark | cvgFinance | May, 2023 | Medium

Convergence is an agnostic “Convex-like” layer, that aims to be deployed on top of various protocols, starting with Stake DAO. In addition to the well-known “Convex-like” behavior of aggregation/optimization of underlying protocols, Convergence also gathers mechanisms inspired from Curve, and Olympus. Gauges and veTokenomics will be used to drive emissions, and a Bonding Program has been established. Using bonds to build Protocol Owned Liquidity (POL) and a diversified treasury will allow Convergence to ensure self-sustainalibity, but also to reward token holders with an intrinsic incentive mechanism that does not rely on underlying protocols’ aggregation.

Overall, Convergence will:

  • Aggregates protocols and operate metagovernance (governance of underlying protocols) like Convex;
  • Operates its own governance and direct emissions like Curve;
  • Issues discounted CVG through bonds like Olympus;
  • Deploys the treasury and rewards CVG lockers.

Below is a brief breakdown of the 3 primary pillars of Convergence.

Aggregations:

Starting with Stake DAO: (https://twitter.com/StakeDAOHQ)

Documentation: Convergence for Stake DAO - Convergence

Each staking contract will be paired to a gauge and will be able to receive CVG emissions. Staking positions are tokenized. The governance power held by Convergence over Stake DAO is delegated to CVG lockers (via mgCVG). Metagovernance will be operated on Snapshot.

For SDT stakers: deposit and convert SDT to cvgSDT. Underlying SDT are locked forever on Stake DAO. cvgSDT stakers benefit from native veSDT rewards (sdFRAX3CRV), and from 10% of SDT harvested from staking pools (LPs). CVG emissions are added on top, according to the cvgSDT gauge weight.

For sdTKNs stakers: deposit sdTKNs listed on Convergence to benefit from boosted earnings, via its veSDT boost socialization model. sdTKNs stakers on Convergence benefit from underlying veTKNs native rewards and Stake DAO’s fees, as well as boosted bribes earnings (distributed as sdTKNs). sdTKNs stakers also receive CVG rewards on top, according to each sdTKN gauge weight on Convergence.

For Curve LPs: deposit LP tokens and benefit from boosted earnings. LPs stakers on Convergence benefit from boosted CRV rewards, boosted SDT rewards, and CVG emissions, according to Convergence’s gauge weights.

Bonds & Treasury:

Documentation (bonds): Bonds - Convergence

Documentation (treasury): Treasury - Convergence

We use a 100% homemade bond technology. It relies on a custom and generic on-chain Oracle paired to Chainlink price feeds, that doesn’t allow negative ROI by design. Bonds will be used to acquire stablecoins (FRAX and crvUSD) and Curve ecosystem assets (CRV, CVX, FXS, FPIS, CNC, SDT, etc). The treasury will then be deployed in the Curve ecosystem on various protocols, and rewards will be harvested at least every 2 weeks. Every 3 months, 80% of these rewards will be distributed to CVG lockers as a real yield, paid in CRV, CVX, CNC, FXS, and SDT (FPIS can be added to the cohort). A zap function will be available. Bonding positions, like staking positions, are tokenized.

Locking mechanism (Govearn):

Documentation: CVG Locking - Convergence

CVG lockers govern the protocol, direct emissions, operate metagovernance, and earn 80% of the yield generated by the working treasury. CVG can be locked up for a maximum of 96 weeks (almost 2 years). Locking positions are tokenized as an NFT (ERC-721).

When CVG is locked, three locking primitives can be created:

When a user creates a locked position, he can choose to lock CVG for veCVG and/or ysCVG. The percentage of CVG that will be allocated to compute both amounts can be customized for every position (50/50, 80/20, 0/100, 100/0…). Locking to veCVG will generate mgCVG. Locking to ysCVG only won’t generate any mgCVG. In other terms, users who lock CVG will have to arbitrate between governance and profit sharing, governance being represented by veCVG/mgCVG, and profit sharing by ysCVG. Delegation has been established for each primitive.

Tokenomics: Tokenomics - Convergence

Motivation:
Owning and incentivizing our liquidity is a crucial part of our strategy of reward redistribution to CVG lockers.

Vote incentives will be paid to veCRV holders, in order to accumulate CRV rewards in the treasury, to pay off the ysCVG primitive. Convergence will not sell any farmed CRV. 80% will be redistributed to ysCVG, the rest will be compounded within the treasury.

Specifications:

  1. Governance: As the protocol is young, it is currently administrated by what we call the “Proto-DAO”, which is composed of 9 team members, and 9 community members. Decisions are voted on snapshot with a dedicated strategy (each Proto-DAO member has an NFT that represents his membership). As the protocol grow, we’ll transition to a fully decentralized governance via veCVG. CVG emissions are already directed with veCVG.

  2. Oracles: For the bonds, we use price_oracle (Curve pools), and Chainlink when the transaction involves a stablecoin to check the peg.

  3. Audits:
    Sherlock (audit contest): https://github.com/sherlock-protocol/sherlock-reports/blob/main/audits/2023.11.29%20-%20Final%20-%20Convergence%20Audit%20Report.pdf
    Hats.finance (audit contest): Issues · hats-finance/Convergence-Finance---IBO-0x0e410e7af8e70fc5bffcdbfbdf1673ee7b3d0777 · GitHub
    Halborn: https://ipfs.io/ipfs/QmPyZZoeNJqt44GiFRoc8E9JctCyp5DYxkW254hhfkeUui

  4. Centralization vectors: Treasuries are managed by team, with multisigs (3/6)

  5. Market History: CVG has just been launched and experienced some volatility. However, since then, the price is quite stable and is evolving within a range.

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