Thread
Have you seen the new @fraxfinance and @ConvexFinance governance proposals?!?
All $CRV, $CVX and $FXS holders…listen up!
The Curve Wars are evolvingđź‘€
🧵👇
All $CRV, $CVX and $FXS holders…listen up!
The Curve Wars are evolvingđź‘€
🧵👇
As part of the original FRAXBP (Frax basepool) proposal, ALL $CRV farmed with POL through the Curve AMO would be locked instead of sold for bribes (as they have been doing)
(All $CVX farmed will continue to be locked as $vlCVX)
If you’re confused, check out this thread👇
(All $CVX farmed will continue to be locked as $vlCVX)
If you’re confused, check out this thread👇
Now this is absolutely massive for $CRV holders, as about 400k in weekly $CRV selling pressure would now be locked as $veCRV (used as voting power for FRAX-native pools)
However, this NEW @fraxfinance proposal takes this even FURTHER👇
However, this NEW @fraxfinance proposal takes this even FURTHER👇
Frax will now only lock at least 5% of all farmed $CRV as $veCRV, with the rest being deposited as $cvxCRV or purchased in the $cvxCRV/$CRV LP!!
We all know what this means…
We all know what this means…
More $CRV deposited as $cvxCRV->more voting power for $vlCVX holders!
So if I’m FRAX… and I hold+lock the most $CVX tokens out of any other protocol (and continue to lock more through farming rewards)…then I lock up to 95% of my $CRV in Convex->more voting power to $vlCVX…
So if I’m FRAX… and I hold+lock the most $CVX tokens out of any other protocol (and continue to lock more through farming rewards)…then I lock up to 95% of my $CRV in Convex->more voting power to $vlCVX…
Seems like the ultimate win-win-win for all protocols!
$CRV locked instead of sold for bribes…
$CVX voting power ⬆️…
$FRAX continues to incentivize their pools as the largest (and now with boosted voting power) $vlCVX holders! (Thus more revenue to $veFXS holders)
$CRV locked instead of sold for bribes…
$CVX voting power ⬆️…
$FRAX continues to incentivize their pools as the largest (and now with boosted voting power) $vlCVX holders! (Thus more revenue to $veFXS holders)
In addition to bribing with treasury $FXS, Frax will use a portion of their farmed $cvxCRV as incentives on Votium for traditional FRAX pools+FRAXBP metapools! (Up to 10 mm in incentives)
What does this mean??
What does this mean??
FRAXBP metapools can receive up to 50% of yield from the FRAXBP, with a max 20% per FRAXBP metapool, based on TVL…
So if I’m a protocol with a FRAXBP metapool, I want to build as much TVL as possible->earn as much $cvxCRV+$FXS as possible!
So if I’m a protocol with a FRAXBP metapool, I want to build as much TVL as possible->earn as much $cvxCRV+$FXS as possible!
And what exactly would the paired protocol need to do to build up TVL/liquidity?
a. Buy up and lock a bunch of veCRV and vlCVX tokens and vote to direct emissions to their pool
b. The much cheaper way… bribing of course!!
a. Buy up and lock a bunch of veCRV and vlCVX tokens and vote to direct emissions to their pool
b. The much cheaper way… bribing of course!!
But that’s not all…
@ConvexFinance will be putting their 26% of $veFXS voting power to work by “mirroring” Curve gauge votes for any pools on Curve/Convex with a corresponding Frax gauge, streaming $FXS emissions to those pools! (80% of $veFXS voting power)
@ConvexFinance will be putting their 26% of $veFXS voting power to work by “mirroring” Curve gauge votes for any pools on Curve/Convex with a corresponding Frax gauge, streaming $FXS emissions to those pools! (80% of $veFXS voting power)
For example, let’s say the FRAX/USDC (FRAXBP) itself receives 10% of total vote weight during the Curve gauge vote, FRAX/FPI receives 5%, FRAXBP metapool A receives 2.5% and metapool B receives 2.5% (assuming no other pools have a frax+curve gauge)
FRAX/USDC (FRAXBP itself) would then receive 50% of $veFXS votes from Convex (10/20%), FRAX/FPI receives 25% (5/20%) and metapool A and B both receive 12.5% (2.5/20%) of the 80% of $veFXS voting power Convex will allocate.
(The other 20% will be used at Convex’s discretion)
(The other 20% will be used at Convex’s discretion)
Not only will FRAXBP metapools earn cvxCRV and FXS emissions from @fraxfinance, now Convex will allocate their $veFXS voting power depending on the amount of Curve voting weight acquired ->more FXS emissions!!
(Talk abt being incentivized to build up TVLđź‘€)
(Talk abt being incentivized to build up TVLđź‘€)
And as TVL is built up in FRAXBP metapools->even more FRAX POL $CRV and $CVX emissions->more $cvxCRV and $veCRV depositing/lockening->more $vlCVX voting power (in which Frax already has THE mostđź‘€)->more $CRV and $CVX emissions to FRAX pools!
Flywheel on steroids?
Flywheel on steroids?
Check out both proposals below!
gov.frax.finance/t/fip-94-fraxbp-revenue-and-incentives-strategy/1689
snapshot.org/
gov.frax.finance/t/fip-94-fraxbp-revenue-and-incentives-strategy/1689
snapshot.org/
Thank you for reading.
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@BarryFried1
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