TDP 24.2: Strategy for Incentivized Liquidity Provision on Convex Finance
| Author | mZeroNine |
|---|---|
| Discussions-To | https://forum.mstable.org/t/mdp24-2-strategy-for-incentivized-liquidity-provision-on-convex-finance/600 |
| Status | Implemented |
| Created | 2021-09-01 |
Simple Summary & Abstract
In line with TDP 24.1, the mStableDAO wants to gather feedback and decide on the preferred strategy from Meta Governors on the liquidity position they would like the Asset Management subDAO to use for the DAI tokens in question.
The mStableDAO is proposing to begin accruing CRV and CVX rewards from one or more of the following pools on Convex Finance:
Stablecoins
susdv2 alusd lusd frax other (voting option)
Motivation
This proposal aims to:
- Find consensus on which farm(s) to utilize on successful passing of TDP 24.1
- Outline the strategy the Asset Management subDAO is going to use for this particular farm
- Generate a transparent process that has had the historic input of all Meta Governors prior to deployment of this strategy
- Include the best opportunity in the DeFi space to utilize our DAI token allocation
Specification
This proposal assumes the successful passing of TDP 24.1, and now seeks to decide on how to put the DAI tokens in question to use.
Once a decision on the strategy has been made, it is proposed to have the current Cat Herder liason with the lead signer from the subDAO (@jwpe) on a bi-weekly basis to determine the right schedule on harvesting and compounding rewards, keep a curated transaction history of all events relating to this venture, and inform the wider mStable community and it’s stakeholders on the results on a quarterly basis in form of a Transparency Report designed for this purpose.
In its current form, it is proposed to harvest and compound 100% of all CRV and CVX rewards from the position back into Convex Finance in order to maximize opportunity and exposure to both protocols and rewards, as well as compound all resulting cvxCRV and 3Crv rewards once this becomes economically feasible.
Copyright
Copyright and related rights waived via CC0.