The Conic Whitepaper
Beep boop, beep bop. The Conic Whitepaper has now been published. Since initial token deployment, the majority of content covering Conic has been rather introductory and non-technical. Today we are happily changing this and unveiling a detailed overview of what we’ve been hard at work building for the past few months. The Whitepaper outlines the architecture of Conic extensively and describes the path for future scaling. Please share your feedback or suggestions below
Read the whitepaper here
First off, great whitepaper. The basics are outlined very clearly but I do have some questions, mostly for clarification.
1 is it possible to provide an example of an LP token swap reward?
I understand that there will be a mint balance, meaning a fixed start balance which increases until someone balances the pool. How much of a Cnc reward would it be?
- Also doesn’t this mean that hypothetically at some point there wouldn’t be any CNC left to reward lp token swappers?
3.Am I correct in thinking that the rebalancing of the pools is done by users and not by Conic?
Meaning after a biweekly vote when the pool weights are shifted from 50:50 to 25:75 that users are the ones shifting those 25% from pool A to pool B?
- Does the lp boost factor increase indefinitely? And how does this increase work?
Assuming I deposit 10k usdc and my lp base boost moves from 1 to 1.5 and then after each month it increases by let’s say 10%?
Thanks for your questions!
At the very beginning, this mint balance would start at 0 and then increase over time until the pools are within x% (this is a parameter we will have to set) of being balanced. If during this increase period, a user brings the pools closer to being fully balanced, they will receive a share of the current LP token swap reward. For instance, if a user brings the pools 10% closer to being fully balanced, they will receive 10% of the current LP token swap rewards. After the next allocation vote, this LP token swap reward will reset to some mint balance based on the previously reached final value and the process will start again. The exact amount of CNC given out this way is hard to predict. As soon as it is financially viable, i.e., offsets gas costs and costs incurred in slippage etc. we expect users to start swapping. The point at which this happens will determine how much CNC they receive.
That’s correct. However, since people should start swapping as soon as it is financially viable to do so, we expect the amount of CNC handed out in each rebalancing to be moderate. In the long-term, we plan to introduce a fee model to finance this reward and allow third-party tokens (similar to bribes) to encourage rebalancing.
Yes, that’s the idea. However, anyone who can supply the Curve LP token needed to rebalance the allocations can do so, meaning that this is not restricted to users who otherwise participate in the protocol. The team will also monitor this and rebalance if no one does so for a while.
The LP boost factor would be capped at some value (another parameter we will have to set). The idea is that this will give users a boost for voting on an Omnipool’s allocation by computing a factor based on the percentage of that pool’s deposits they hold and based on how long they have already staked the Conic LP tokens received from that pool.
Hopefully this clarifies it, please let us know if you have any other questions!
Thanks for the extensive reply.
Thank you. I now understand that determining the mint balance is merely a “first time after launch problem” since at the next allocation vote it starts at 50% of the previous mint balance. Smart.
So possibly double bribes. For vlCNC holders and later MAYBE for token swappers depending on how the market values balancing. Cool.
I see. So e.g: a 100% bonus that’s given linearly over the span of a year? It makes sense to cap it since otherwise LP’s could eventually dilute the voting power of vlCNC lockers….I suppose on where you stand. LP’s might disagree with me here ^^
Should be all clear. Thank you