Creating the option and setting up the infrastructure to moving gauge rewards to veCRV from CRV.
Allow users to opt into receiving veCRV instead of CRV on each gauge. Claiming as veCRV would cause checkpointing and locking to match their existing vesting date.
Receipt of veCRV is non-taxable. Users would earn the rewards for holding veCRV without having to realize income on their CRV tokens. Moreover, this would, to some small degree, reduce sell pressure on CRV.
By creating the mechanism to award veCRV, we set ourselves up to, at a later date, decide if we want to move away from pure CRV rewards to a mix of CRV and veCRV for LPs. Our implementation should have an eye on such flexibility accordingly.
Given the checkpoint mechanics, a “claim as veCRV” is likely the simplest solution that wouldn’t break integrations like Convex, Yearn, and StakeDAO. Products like Convex might opt to use the new feature (thus minting cvxCRV).
- Save burgers huge amounts on their taxes
- Reduce sell pressure on CRV
- Incentivize more longer term LPs
- If most of the market is using wrapped vaults, how much difference does this make?
- It is engineering on a feature that doesn’t directly generate more revenue for veCRV holders