This is a proposal to replace the current CNC locker with an updated v2 CNC locker. On Thursday, August 4, 2022 6:27:14 PM (GMT) the first locked CNC will unlock in the Conic locker. This would be an appropriate time to shutdown the v1 locker, which would release all locked CNC, and subsequently introduce the v2 locker.
The proposed design of the v2 locker entails the following:
- Support for accrual of CRV and CVX platform fees for vlCNC holders
- Reward vlCNC holders that locked in the v1 locker
- Add incentives for Conic LPs to lock CNC
The v2 Locker redesigns several components of the v1 locker.
The locking period can be decided by a user and must be a minimum of 4 months and a maximum of, e.g., 8 months (the max. locking duration should be discussed by the community). Hence, users may also lock for any duration in the range of 4 to 8 months (e.g. 21 weeks). The v2 locker also supports relocking. A user may relock all or one of their locks at any point in time.
Platform fees for vlCNC holders cannot be introduced with the v1 locker. The v2 locker supports CVX and CRV fees to be claimable by vlCNC holders. Note that Conic platform fees are not enabled by default, but will need to be passed via Conic governance.
There is a boost factor for CNC lockers, which will determine the vlCNC balance of a user. The vlCNC balance determines how much voting power and fees a vlCNC holder receives. The boost factor is constant over the lock period for a given lock and is dependent on two factors: the base boost factor and the LP boost factor.
The base boost factor determines the vlCNC-t (vote-locked CNC total) balance, which is the balance that is used for both voting and fee earnings. The base boost factor is determined by how long CNC holders lock their tokens for, where the boost factor is proportional to the duration of the lock. The default base boost factor is 0. Hence, if no CNC is locked, a user cannot obtain a vlCNC balance, regardless of the LP boost factor (see next section).
The LP boost factor gives a boost on the vlCNC balance, which is only used for voting (i.e. no extra fees are earned on the boost). Conic LPs may stake their Conic Omnipool LP tokens to receive a LP boost factor. The boost factor obtained from staked LP tokens only boosts the vlCNC balance for voting. The default factor for LP boosts is 1.
The final boost factor of a user is the product of the base boost factor and the LP boost factor. For voting, the boosted balance will be the final boost factor. For earnings, the balance will be the base boost factor.
Note that the boost factor may vary between multiple locks created by the same user.
LPs can stake/unstake their LP tokens at any point in time. The vote boost factor will increase linear with time (1 month). Taking into account the USD price (as non-USD stablecoin Omnipools pools may exist) and the percentage locked of the total LP token supply.
If a user does not interact with the locker after their lock has expired, the user’s boost factor may not be accurate. Hence, there is a
kick function, which may be called on users that have expired locks once the grace period has ended. The caller would receive a share of the earnings that were generated since the lock has expired.
The launch will contain an airdrop of the vlCNC boost to:
- Users that locked CNC in the v1 locker
- veCRV holders
This airdrop would not be a token, but rather a boost on a user’s locked CNC balance (on the final boost factor). The airdropped boost would apply for every lock that is created by an eligible user within one month after claiming the airdrop. The airdrop must be claimed within the first 3 months after announcement.