After failing the vote for initial deployment on Conic v2, this proposal suggests creating a new Omnipool for USDT, one of the most widely used USD-pegged stablecoins. This would follow a governance vote to determine the eligible Curve pools for the USDT Omnipool.
Background:
Conic re-launched its Omnipools on February 1, 2024, offering three initial options: ETH, CRVUSD & USDC.
The criteria for the initial Omnipools on v2 was that the pools had to receive more than 50% support to be granted an Omnipool. USDT was rejected with 39.72% support. This proposal aims to reconsider the addition of a USDT Omnipool.
Motivation:
Omnipool TVL has increased rapidly since its inception, but has become stagnant in the last few days and the Conic community recognizes the importance of a growing TVL for the protocol’s success and the vlCNC’s utility. A USDT Omnipool could boost Omnipool TVL significantly and benefit the Conic protocol.
USDT, issued by Tether Limited, is the largest dollar-pegged stablecoin in circulation with about 40 billion tokens on Ethereum — almost double the size of USDC, and 96 billion on all chains combined, almost 4 times that of USDC. However, there is no incentive for USDT-holders to deposit into Conic as there is no USDT Omnipool.
Earlier objections of Tether’s transparency have been somewhat overblown and lately, confirmation of their holdings has come out through various sources.
For Conic to continue to grow it would be foolish to not include USDT as a choice to deposit into, also considering USDT was once included in Conic v1, so objections today should be limited
Just like with FRAX, demand for the USDT Omnipool in Conic v1 was underwhelming. I think the best course of action is to, at this time, focus on other efforts to grow Conic such as liquidity allocation modules or CAPs for current Omnipools.
IMO this isnt a valid argument. Just because USDT wasnt popular during the time of v1 doesnt mean it cant be popular in v2.
Its the same to assume that crvUSD must be popular in v2 because it was popular in v1. But as we all can see, it not the case and you just cant predict the market and capital flow like that. The market moved and we dont know how the market will react on a USDT pool.
The only fact we know is that USDT is the biggest stable coin out there with nearly 100 billion market cap and deep integration in serveral curve pool. At one point conic will deal mit USDT anyway. Why not now?
Only omnipools that are product market fit should be added. The USDT OP hasn’t performed well. Conic just relaunched, it’s better to keep it simple for now by not adding superfluous omnipools imo. Users can get exposure to USDT through other available OPs.
Your point is valid and one of the reasons i wanted an USDT OP in the v1. But the reality is that only few people used it, likely due to the pools redundancy and a lack of real usdt usage in deFi