TL/DR: Whitelist crvUSD to allow CNC holders to vote for exposure to this pool during the Liquidity Allocation Votes [LAV] for the USDC and USDT omnipools.
Curve Finance is the leading decentralized finance platform. crvUSD is a decentralized stablecoin administered by the Curve DAO and pays fees to veCRV stakers.
The peg of crvUSD is reinforced by four Peg Keeper pools. The balances within these pools inform the crvUSD price and borrow rate. When these pools are overbalanced with crvUSD, the borrowing rate rises to encourage repayment, and when the pools are underbalanced the borrowing rate falls.
Conic has become the leading destination for $crvUSD, with $34MM of the $43MM market cap in its crvUSD omnipool. The omnipool farms the crvUSD within the four Peg Keeper pools, which is delivering a 13% APR at present, beating the peak $crvUSD borrow rate of 10%. The success of Conic Finance’s omnipools is pushing up borrow weights by overweighting the Peg Keeper pools and causing a great imbalance in The Force.
We propose to introduce USDC/crvUSD and USDT/crvUSD voting options during an upcoming Liquidity Allocation Vote (LAV). This would benefit the Conic ecosystem by increasing the yields on the USDC and USDT omnipools, thanks to the CRV liquidity rewards being directed to these Peg Keeper pools. This could also benefit crvUSD by providing downward pressure on the borrowing rate, possibly spurring the growth of the ecosystem.
After consultation with the Conic Finance team, this proposal is to whitelist crvUSD via a CAP for both the USDC and USDT Omnipools. An omnipool specific snapshot vote may be required to whitelist these assets for LAV.