Conic v2 Launch Proposal

On December 29th the last in a series of three DAO votes concluded. Through the culmination of these votes, the initial parameters for v2 Omnipools have been put into place by vlCNC holders. Per the plan outlined in our most recent Discourse post, it is now time to propose Conic v2.

At its core, Conic v2 will feel very similar to Conic v1 for users. As expressed to the community, the primary focus of v2 was making Conic as robust and secure as possible. Beyond security-focused implementation, Conic v2 does come with new features.

The paragraphs below outline each new feature that we propose Conic v2 launch with. Over the coming days a DAO vote will be held to determine whether Conic v2 shall launch in accordance with this proposal.

The following outlines each new feature that Conic v2 will launch with should this proposal pass:

Liquidity Allocation Modules (LAMs)

A core feature of v2 is the support for liquidity allocation modules (LAMs). A LAM contains the logic for allocating the liquidity of an Omnipool. In Conic v1, all liquidity was allocated to Curve and staked on Convex. This is the Curve&Convex LAM, which will also be used by default in Conic v2. However, an Omnipool may contain multiple LAMs. For instance, an Omnipool could contain a LAM that supports PRISMA rewards or a LAM that offers peg-keeping as a service with crvUSD. New LAMs can be added via CIPs. We envision LAMs to be the gateway for scaling Omnipool liquidity across a diverse range of markets.


Conic v2 introduces a liquidity bootstrapping mechanism, whereby holders of the crvUSD Omnipool LP token (cncCRVUSD) can bond their tokens in exchange for vlCNC (i.e., CNC locked for 4 to 8 months). Bonding will be enabled for the first 52 weeks. There is a fixed amount of vlCNC that can be bonded per week (epoch). As time passes in an epoch, a linearly-increasing discount gets applied to the amount of vlCNC that users can receive in exchange for cncCRVUSD LP tokens. The received cncCRVUSD LP tokens get staked on Conic to earn CRV and CVX (see reimbursement plan) before gradually being streamed as rewards to vlCNC holders. A total of 400,000 CNC will be allocated to the bonding mechanism. These funds will be allocated from the Conic treasury. The normal CNC inflation schedule will not be altered.

Platform Fees

We propose to launch Conic v2 with a 10% platform fee enabled. These fees would be charged on CRV and CVX earned by an Omnipool. Initially, 100% of platform fees will go to the debt (reimbursement) pool. Over time this will transition to vlCNC holders as well. Note that fees (incl. earnings from bonding) will only be paid to vlCNC holders that migrate their CNC to the new vlCNC locker.

Locker Migration

Conic v2 will use a new version of the vlCNC locker. This is due to additional logic that is needed to stream rewards to vlCNC holders other than CRV and CVX (e.g., such as bonded cncCRVUSD). Hence, on launch, the existing locker will be shut down, allowing all locked CNC to be withdrawn. The re-locking will be facilitated via the Conic UI. The first LAV will take place 3 weeks after launch.

Airdropped vlCNC Boost

Lockers (i.e., holders of vlCNC) that had CNC locked at any time since the protocol shut down will receive a boost on their vlCNC balance when they relock in the new vlCNC locker. This boost can be applied once to a single lock. The boost can be claimed in the first 6 months after launch. Note that earnings from bonding will be paid out to vlCNC holders using their boosted balance. The airdropped boost amount will be based on the vlCNC balance in the current locker (i.e., it will be based on the historic CNC amount locked and lock time boost).

Reimbursement Plan

Conic v2 will enable platform fees, which will be fully allocated to the debt pool for the first year. Additionally, all CRV/CVX/CNC rewards earned from staking unclaimed cncCRVUSD LP tokens will be allocated to the debt pool. LPs that were affected by the exploits will receive Conic debt tokens that can be redeemed for funds that accrue in the debt pool or exchanged on secondary markets. Eligible LPs will be able to claim and redeem their debt tokens via the Conic UI upon v2 launch. The parameters for debt token claiming and tokenomics are outlined as follows:

  • Total supply: 4,337,233
  • 6 month claim period
  • Claimable balances (i.e., affected users’ share of the debt pool) are based on the USD value lost at the time of exploit.

CNC Inflation

On August 2nd, as per the results of a DAO vote, CNC emissions to Conic Omnipools were paused. CNC inflation will be re-enabled upon v2 launch. The inflation schedule will continue where it left off when it was first paused.


Guardians are whitelisted addresses that are able to temporarily pause an Omnipool. When an Omnipool gets paused, deposits to the pool are disabled. Withdrawals are never disabled. There is no time delay on pausing an Omnipool. If an Omnipool is paused, the Conic core multi-sig can un-pause the pool, which re-enables deposits. This feature adds as an additional security layer that should allow for quick response times in case there are ever any issues (e.g., a bug is reported and puts funds at risk but pausing an Omnipool could mitigate the risk and allow for a safe migration of funds). We propose the following people to become Conic guardians: Michael Egorov, c3p0, Wicket Warrick, r2d2, and General Grievous. Any additional Conic guardians, or revisions to existing, will need to pass via a governance vote and should be active members within the Curve ecosystem.

Conic Delegates

Conic v2 will enable vlCNC holders to delegate their voting power to another address. Delegation will be easy and can be done in a few clicks on Snapshot. Anyone can become a Conic delegate and the Conic core team will setup a delegate address upon launch.

Flash Loan Restrictions

A rather uncommon design decision that has been taken was to disable Conic usage with flash loans. Conic v2 does not allow smart contracts to deposit and withdraw in the same transaction unless the smart contract gets whitelisted via a governance vote. Note that rebalancing still allows for the use of flash loans.

Rebalancing Rewards

Rebalancing rewards will be disabled by default when Conic v2 launches. A DAO vote will be required to enable these for a given pool. We suggest to hold the first vote to enable rebalancing rewards after 4-6 weeks subject to the Omnipools’ TVL.


We’d like to end this proposal with a thank you to those who have made the journey to Conic v2 possible. To our auditors, ChainSecurity and MixBytes. Both have been very helpful. To the Curve team and all their contributions to Conic. But most of all to the Coneheads who have continued to relentlessly support us. It’s an exciting time for Conic, for a new hope is upon us.


great proposal
What is required for a new LAM? Does it require coding or does the current audited code support it already? (e.g: Prisma)


The logic/design to support LAMs is audited. The LAMs however need to be coded (and depending on the complexity may require an audit). The complexity of a LAM depends of course on the protocol the LAM integrates with. Note that the LAMs do not need to be developed by the Conic core team but can just be developed by anyone. The Conic team would of course be happy to review the code and the addition of a LAM needs to be passed via DAO governance.

We suggest that LAMs are first discussed on the Conic discourse.


This sounds amazing, I’m really excited for the future of Conic. Good job to the team for sticking with the project and not abandoning it after the hack!


Reimbursement for ETH LPs will be based on USD price too? That’s not very fair imo

Good proposal. I sense debt burden may disengage a number of lockers. Excited to see LAM model across the curve ecosystem

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It can be clearly seen that the team wants to prioritise reimbursement with 100% of platform fees going to debt pool. Which shows that the team cares about its existing user base.

However, this may disincentivize some potential users since.
Therefore, maybe it would be more reasonable to split it? For instance, 70% to debt pool, 30% to other forms of rewards. More incentives → more fees → faster debt pool fill up.


The flee split between vlCNC holders and the debt pool can be adjusted over time. The reason why it’s so high initially is that:

  • Bonding rewards: 100% → vlCNC holders
  • Platform fees: 100% → debt pool

The bonding mechanism facilitates more platform fees going to the debt pool while still generating significant yield for vlCNC holders. While it primarily serves the purpose of liquidity bootstrapping, it is also there to balance incentives between vlCNC holders and the debt pool. Keep in mind that vlCNC holders (or anyone) can buy debt tokens and therefore receive fees that the debt pool accrues.

Thank you for raising this point, the balance of incentives between vlCNC holders and the debt pool should be continuously monitored and adjustments should be made as needed.