What’s the issue?
Once the Curve gauge is live for the CNC/ETH Curve pool, the current contract that handles distribution of CNC rewards to LPs will need to be shutdown (as it currently does not support claiming CRV + CVX). There needs to be a decision as to how CNC rewards should be distributed once this contract is shut down.
Proposal
A vote should determine how CNC rewards should be used once the Curve gauge is live. There are essentially three scenarios:
- Use CNC as bribes (e.g. for vlCVX holders on Votium or for both veCRV and vlCVX holders on Paladin). This was already discussed here. The benefit would be that more liquidity can be attracted to the pool due to the higher APR.
- Use CNC as an extra reward (the CNC would be paid out through the Curve gauge as an extra reward, so LPs can claim CVX, CRV and CNC). The benefit would be that the LPs would receive CNC directly and presumably they are more comfortable holding CNC.
- Use CNC for both bribes and as an extra reward (e.g. a 50/50 split of inflation could be paid out for bribes and as extra rewards). The benefit of doing both could be that a more informed decision can be made as to what makes more sense in the long term (e.g. review how much was dumped vs locked, etc.).
If options 1 or 3 get passed, then another vote should determine which platform should be used to pay out the bribes (and to whom).
I propose to apply the outcome of the vote for the first three months once the Curve gauge is live and then re-evaluate. A good review point would be when the CNC emissions get reduced early April.