Yesterday, we published an outlook on Conic that detailed what the first steps would be on our path towards recovery. One of which would be to hold a vote to disable CNC rewards for Omnipools. This Discourse post provides the full context of this proposal to disable rewards and we encourage the community to share their feedback here. Voting will begin on Snapshot in approximately two days.
Proposal
This proposal is to disable CNC rewards to Omnipools and reallocate these emissions to the Conic treasury. If this proposal is to pass, current Omnipool LPs would stop earning CNC rewards but still continue to earn base yield and CRV and CVX rewards.
As per our emission schedule, 4100 CNC is emitted to Omnipool LPs per day. Scaled monthly, this equates to a substantial portion of the CNC supply. The reason or purpose of emitting CNC to Omnipools is to incentivize LPs and thus is why this proposal is being raised.
Conic Omnipool deposits were disabled quickly after the exploit affecting the crvUSD Omnipool occurred. Disabling deposits halted the vulnerability that allowed the exploit to occur and ensured that no more funds could be stolen from the pool. It should be made clear that while withdrawals are and will continue to remain open, deposits will remain disabled until fixes have been implemented and new pools have been deployed.
With this in mind we think it is within the Conic community’s best interest to vote to disable CNC rewards for Omnipools for the following reasons:
- Incentivizing pools that cannot be deposited into is simply not practical.
- LAVs (which are key for Omnipool LPs) will remain disabled until new pools are deployed.
- Continuing to emit CNC rewards is unfair to the LPs that withdrew as a result of the exploit(s).
- Current LPs will need to migrate to the new pools when they are launched.
- Reallocating these emissions to the Conic treasury will stop all CNC sell pressure from Omnipool LPs.
- With these emissions under the control of the treasury, this will put Conic in a better position for incentivizing v2 pools and is another source of ammunition for the Conic recovery plan.