TL-DR: Move liquidity mining rewards to vote incentives on Quest to grow Conic’s liquidity and align veCRV & vlCVX users further
Hello everyone, we’ve been watching Conic grow from the sidelines and believe now would be an excellent time to switch from Liquidity Mining to Vote Incentives, as many community members previously mentionned.
Conic has been incentivizing liquidity on the CNC-ETH Curve pool at the rate of 50,000 CNC / month (which is divided by two every year).
At this point, the campaign has attracted 1.5M$ of liquidity and the LPs are benefiting from 122% APR.
We believe it is possible for Conic to attract more liquidity by switching from liquidity mining to vote incentives on Quest.
Timing this switch with the upcoming release of the protocol would be relevant as Conic would start distributing its CNC to veCRV and vlCVX* holders instead of LP. This means that on top of rewarding LPs, we would effectively be doing an indirect marketing campaign to Curve & Convex holders, helping them discover Conic.
Additionally, there is currently a 20% discount on vote incentives. This means DAOs pay 1$ of incentives and their gauge benefits for 1.2$ of emissions. Conic could get more rewards, with the same budget. With its current budget, we expect Conic would get ~41,000$ of weekly emissions. This would imply a 23% boost in rewards for LPs.
Another side effect of switching LP rewards for LPs is the LP arbitrage happening on the Curve interface.There rarely are yields above 60% because some people farm whatever is highest on the interface.
- Create a proposal and enable a gauge;
- 150,000 CNC over 3 months;
This is a 3 month trial, if the proposal passes, we will collect data over this period and see if this is viable for a longer term.
*Quest is the only platform that allows to incentivize veCRV & vlCVX holders simultaneously