Whitelist mkUSD for crvUSD omnipool

Proposals
#1

The crvUSD Omnipool has now been live for roughly 2 weeks. With over $5m in TVL, the crvUSD Omnipool is currently allocating liquidity across 3 whitelisted Curve pools:

  • USDT+crvUSD
  • USDC+crvUSD
  • FRAX+crvUSD

This proposal aims to whitelist mkUSD as an expansion to the crvUSD omnipool.
mkUSD pool has not been up long on Curve but already has the highest TVL of any of the crvUSD pools. While the rewards are still not enticing, bribes will surely commence shortly for the pool, and whitelisting of the pair now would make it available for LAV at a later date when enough rewards are streaming to the pool for it to be interesting enough to direct liquidity to the pool.

Background:

The MKUSD is a new stablecoin originating from Prisma Finance, a decentralized finance protocol.
It is an Ethereum liquid-staking-token-backed stablecoin where users deposit specific liquid-staking tokens in a vault to get MKUSD

As of the data available today, the total market value of MKUSD’s circulating supply is just shy of 100m USD.

Risks:

  1. Governance Risks: Prisma Finance has a robust governance system that includes a one-week validity period for votes, a 24-hour timelock post-quorum, and a guardian multisig with veto power. However, any changes in the governance structure or decisions made by the governance could impact the value of MKUSD.

  2. Security Risks: Prisma Finance emphasizes immutability and security, avoiding Proxy contracts to reduce governance attack surfaces. Despite this, there’s always a risk of potential security breaches in any decentralized finance protocol.

  3. Economic Risks: Prisma’s economic model depends on additional incentives, such as gauge emission systems that are essential for directing liquidity to the Stability Pool. Any changes in these incentives could impact the stability of MKUSD.

For Conic to continue to grow its crvUSD TVL it would be beneficial to whitelist mkUSD. It also spreads risk over more pools and with less TVL per pool the gain should also be in higher rewards.

Please feel free to comment below

3 Likes
#2

I’d move to approve mkusd after successful rebalancing period.

1 Like
#3

Thanks for submitting this proposal. As of now, the majority of rewards for the mkUSD+crvUSD pool stream through Prisma. Therefore, without the implementation of a PRISMA liquidity allocation module (LAM) a whitelisted mkUSD pool would not realize those additional rewards. I would wait until a PRISMA LAM has been implemented before whitelisting mkUSD.

2 Likes
#4

I support implementing this LAM to access both mkUSD and ULTRA.

#5

Approve of whitelisting in case of rewards are coming in later.
I don’t see the harm in being a bit protective

#6

Interesting to see when this proposal will come up

#7

Another thing to consider is there is now the Prisma grants council. We could potentially get mkUSD to seed the omnipools. I think mkUSD should also be added for the USDC pool as well. Even without staking them on Prisma or waiting for the mkUSD LAM, the curve pools are respectable APYs.

#8

Proactive, not protective