FIP-89: Add additional collateral assets to Tribe Convex Fuse Pool

Proposals
1

Summary

  • Add cvxCRV, cvxcrvCRV, and cvxfxsCrv, rocketethwstethCrv (rETH-wstETH LP), stETH2-stETH LP, and staked CVX as collateral to Tribe Convex Fuse Pool (Pool 156) with parameters similar to stethCRV.
  • Deploy 2000 ETH from the protocol in Pool 156

Motivation

There is $1.3B in TVL across cvxCRV, cvxcrvCRV, and cvxfxsCrv, rocketethwstethCrv, and staked CVX that users may want to collateralize and borrow against.

Adding ETH into Pool 156 allows users to borrow ETH against stETH and rETH Curve LP positions to create leveraged yield farming opportunities that can’t be liquidated.

Specification

Whitelisting new collateral on the Tribe Convex Fuse Pool (Pool 156) through OA.

A DAO vote will also be created to seed 2000 ETH in Fuse pool 8 Tribe Convex Fuse Pool (Pool 156).

Voting

The proposal will use simple choice voting. Voting options :

  • Yes, add cvxCRV, cvxcrvCRV, and cvxfxsCrv, rocketethwstethCrv (rETH-wstETH LP), and staked CVX as collateral and seed 2000 ETH to Tribe Convex Fuse Pool (Pool 156).
  • No, more discussions needed
6 Likes
2

StakeWise is opening a Curve pool, pairing sETH2 with stETH. Let’s also consider adding these LP tokens to the pool.

Summary:
Add sETH2-stETH LP as collateral to the Tribe Convex Fuse Pool (Pool 156) with parameters similar to stethCRV.

3

Strong support.

The rETHwstETH LP is an incredibly capital efficient pool with its existing incentives and TVL. I expect to see broad adoption of the Yearn pool.

4

I’d like to signal my heavy support of this from the FRAX side! In fact, I spoke with Joey and some of the Rari core devs and we can definitely use the Fuse Lending AMO to mint FRAX supply into this pool for borrowers. We can try to scale it up faster than usual too especially given the great assets supported already and hopefully cvxFXSCrv LP soon.

2 Likes
5

I’d love to also support StakeWise in the Convex pool. It would be great to add them when their Curve pool goes live

1 Like
6

Updated to add stETH2-stETH LP.

7

We should also add stETH to Tribe ETH Fuse Pool as suggested here.

Currently the pool supports only wstETH and ETH and could certainly benefit from supporting stETH as well.

8

All feedback has been consolidated here. Last call before sending to snapshot.

Summary

  • Add cvxCRV, cvxcrvCRV, and cvxfxsCrv, rocketethwstethCrv (rETH-wstETH LP), stETH2-stETH LP, and staked CVX as collateral to Tribe Convex Fuse Pool (Pool 156) with parameters similar to stethCRV.
  • Deploy 2000 ETH from the protocol in Tribe Convex Fuse Pool (Pool 156)
  • Add stETH to Tribe ETH Fuse Pool (Pool 146) in addition to wstETH, which is already in this pool

Motivation

There is $1.3B in TVL across cvxCRV, cvxcrvCRV, and cvxfxsCrv, rocketethwstethCrv, and staked CVX that users may want to collateralize and borrow against.

Adding ETH into Pool 156 allows users to borrow ETH against stETH and rETH Curve LP positions to create leveraged yield farming opportunities that can’t be liquidated.

At time of writing, there are only 786 holders of wstETH but 53,560 holders of stETH. By only having wstETH in the Tribe ETH Fuse pool (Pool 146), we are adding friction as the user has to wrap their position before depositing.

Adding stETH into this Tribe ETH Fuse pool (Pool 146) would allow holders of the rebasing token to use as collateral to borrow ETH.

Specification

Whitelisting new collateral on the Tribe Convex Fuse Pool (Pool 156) through OA.

A DAO vote will also be created to seed 2000 ETH in Tribe Convex Fuse Pool (Pool 156).

Whitelisting new collateral on the Tribe ETH Fuse Pool (Pool 146) through OA.

Voting

The proposal will use simple choice voting. Voting options :

  • Yes, add cvxCRV, cvxcrvCRV, and cvxfxsCrv, rocketethwstethCrv (rETH-wstETH LP), stETH2-stETH LP, and staked CVX as collateral, seed 2000 ETH to Tribe Convex Fuse Pool (Pool 156), and add stETH to Tribe ETH Fuse Pool (Pool 146).
  • No, more discussions needed
9

This feels like a draft still and I don’t think it should go to last call yet. I’ll try to clarify things from what I understand (some people commented, but their suggestion is not what is included in the last call message, and naming of tokens are not consistent), and express some concerns.

To clarify, these are the tokens mentioned by people in this thread, and what I believe the “last call proposal” is supposed to include :

To be added in pool 156 (Tribe Convex Pool):

To be added in Pool 146 (Tribe ETH Pool):

  • stETH

Now for my feedback:

1/ cvxCRV and cvxFXS worry me, these are liquidity pools for exiting a permanently locked position in Convex. What does the liquidation path look like for these assets, in case there is a peg break ? This is a very relevant concern for Fuse pool users. This is an issue that needs solving before we add them to the pool IMO. Liquidation in case things go south is an issue for all these tokens, but we’ve seen perma-lock deposit tokens loose peg before & this seems more likely in general for these 2 tokens.

2/ Do the fTokens support a rebasing token underlying, which stETH is ? I think the answer is no & this is why we added wstETH and not stETH to the Tribe ETH Pool 146.

3/ This seems like a use case more fit for pool 146 (Tribe ETH pool).

You could create a vote to whitelist rETH (RocketPool) and sETH2 (StakeWise) as collateral in Fuse pool 146, these are non-rebasing tokens & I’m sure there would be wide support for such a proposal, the original idea of pool 146 was to add multiple staking derivatives.

But we can do both (naked tokens in pool 146, LP tokens with wstETH in pool 156).

4/ Given how risk-heavy the pool 156 is (how many layers of DeFi lego are in there?), I won’t support the protocol risking 2000 ETH in this pool, I think this needs to be voted on separately (if ever). Seeding more in pool 146 if we add rETH and sETH2 makes sense though (if utilization picks up, it is still pretty low as of now).

10

I agree the risks are much higher for these assets, a smaller LTV of 40-50% and conservative initial supply caps of say 10-20m each should protect the protocol as the liquidity/leverage ratio is kept to a high value.

The answer is yes, ONLY if used as collateral with borrowing disabled.

I’m most in favor of adding rETH/stETH LP to the convex pool where the individual components can be added to the Tribe ETH pool.

I think putting in at least 500-1000 makes sense to gauge leverage demand. If the Tribe ETH pool picks up I’d be much more in favor of the other.

Before moving forward, collateral caps and LTVs for each asset need to be listed.
Suggested based on relative risk:
40% LTV, 20m cap: cvxCRV
40% LTV, 20m cap: cvxcrvCRV
40% LTV, 20m cap: cvxfxsCrv
60% LTV, 40m cap: rocketethwstethCrv
50% LTV, 30m cap: staked CVX

Other than that, I think the proposal is good to move forward but should absolutely be “approval style voting” so each collateral + the ETH seeding can be voted on independently.

3 Likes
11

It would be great to get the new StakeWise Curve LP listed here. I’m conscious this proposal will be going live very shortly and we have not yet launched our pool. Can the sETH2-stETH LP be included within the proposal without being live?

12

Most of these actions are OA actions, so I’d say yes, the DAO can vote on it, even if it’s not ready to be done on-chain. That just means that when your pool is created, OA will be authorized to add it :slight_smile:

1 Like
13

Definitely support the idea of these collaterals, especially the rETH-stETH as collateral. That pool has gotten a lot of attention from ETH “purists” and no other lending platform is supporting them AFAIK. I would love to see Fuse push forward and be the first to support this, would be excellent marketing.

2 Likes
14

Here’s an updated proposal to add more clarity and include the LTV limits and caps.

Summary

  • Add the following as collateral to Tribe Convex Fuse Pool (Pool 156):
  1. Convex Staked CRV (cvxCRV) at a 40% LTV and $20M cap
  2. Curve LP for cvxCRV-CRV (cvxcrvCRV) at a 40% LTV and $20M cap
  3. Curve LP for cvxFXS-FXS (cvxfxsCrv) at a 40% LTV and $20M cap
  4. Curve LP for rETH-wstETH (rocketethwstethCrv) at a 60% LTV and $40M cap
  5. Staked CVX (not to be confused with 16 week locked CVX) at a 50% LTV and $30M cap
  6. Curve LP for sETH2-stETH (once available on Curve)
  7. 1000 ETH from the protocol
  • Add stETH to Tribe ETH Fuse Pool (Pool 146)

Motivation

At the time of writing, there is approx. $1.5B TVL across Convex Staked CRV (cvxCRV), Curve LP for cvxCRV-CRV (cvxcrvCRV), Curve LP for cvxFXS-FXS (cvxfxsCrv), Curve LP for rETH-wstETH (rocketethwstethCrv), and Staked CVX that users may want to collateralize and borrow against.

Adding ETH into Pool 156 allows users to borrow ETH against stETH and rETH Curve LP positions to create leveraged yield farming opportunities that can’t be liquidated. At time of writing, there are only 786 holders of wstETH but 53,560 holders of stETH. By only having wstETH in the Tribe ETH Fuse pool (Pool 146), we are adding friction as the user has to wrap their position before depositing.

Adding stETH into this Tribe ETH Fuse pool (Pool 146) would allow holders of the rebasing token to use as collateral to borrow ETH.

Specification

Whitelisting new collateral on the Tribe Convex Fuse Pool (Pool 156) through OA.

A DAO vote will also be created to seed ETH in Tribe Convex Fuse Pool (Pool 156).

Whitelisting new collateral on the Tribe ETH Fuse Pool (Pool 146) through OA.

Voting

The proposal will use approval style voting:

  1. Add Convex Staked CRV (cvxCRV) at a 40% LTV and $20M cap as collateral to Tribe Convex Fuse Pool (Pool 156)
  2. Add Curve LP for cvxCRV-CRV (cvxcrvCRV) at a 40% LTV and $20M cap as collateral to Tribe Convex Fuse Pool (Pool 156)
  3. Add Curve LP for cvxFXS-FXS (cvxfxsCrv) at a 40% LTV and $20M cap as collateral to Tribe Convex Fuse Pool (Pool 156)
  4. Add Curve LP for rETH-wstETH (rocketethwstethCrv) at a 60% LTV and $40M cap as collateral to Tribe Convex Fuse Pool (Pool 156)
  5. Add Staked CVX (not to be confused with 16 week locked CVX) at a 50% LTV and $30M cap as collateral to Tribe Convex Fuse Pool (Pool 156)
  6. Add Curve LP for sETH2-stETH (once available on Curve) as collateral to Tribe Convex Fuse Pool (Pool 156)
  7. Add 1000 ETH from the protocol to Tribe Convex Fuse Pool (Pool 156)
  8. Add stETH as collateral to Tribe ETH Fuse Pool (Pool 146)
2 Likes
15

I believe we should cancel the snapshot & post a new one.

There is no way to vote no on each of the approval options, this is very biased because reaching 10M of quorum for approving something is much easier than reaching 10M of quorum and having a majority of support on it.

See previous votes with similar structures, we always included yes/no options for each choice:

Also, I’m not married to process, but proposals are supposed to be discussed more (see Governance guidelines) before being posted on Snapshot, to prevent issues like this.

I know it’s exciting to propose something and have people vote on it etc and then see it live, but these votes have implications, they will potentially move millions of user and DAO funds, this is not something to take lightly.

2 Likes
16

Snapshot has been deleted. Yes/no optionality has been added for each asset. Descriptions for voting options are condensed due to character limitations in snapshot. Last call.

Summary

  • Add the following as collateral to Tribe Convex Fuse Pool (Pool 156):
  1. Convex Staked CRV (cvxCRV) at a 40% LTV and $20M cap
  2. Curve LP for cvxCRV-CRV (cvxcrvCRV) at a 40% LTV and $20M cap
  3. Curve LP for cvxFXS-FXS (cvxfxsCrv) at a 40% LTV and $20M cap
  4. Curve LP for rETH-wstETH (rocketethwstethCrv) at a 60% LTV and $40M cap
  5. Staked CVX (not to be confused with 16 week locked CVX) at a 50% LTV and $30M cap
  6. Curve LP for sETH2-stETH (once available on Curve)
  7. 1000 ETH from the protocol
  • Add stETH to Tribe ETH Fuse Pool (Pool 146)

Motivation

At the time of writing, there is approx. $1.5B TVL across Convex Staked CRV (cvxCRV), Curve LP for cvxCRV-CRV (cvxcrvCRV), Curve LP for cvxFXS-FXS (cvxfxsCrv), Curve LP for rETH-wstETH (rocketethwstethCrv), and Staked CVX that users may want to collateralize and borrow against.

Adding ETH into Pool 156 allows users to borrow ETH against stETH and rETH Curve LP positions to create leveraged yield farming opportunities that can’t be liquidated. At time of writing, there are only 786 holders of wstETH but 53,560 holders of stETH. By only having wstETH in the Tribe ETH Fuse pool (Pool 146), we are adding friction as the user has to wrap their position before depositing.

Adding stETH into this Tribe ETH Fuse pool (Pool 146) would allow holders of the rebasing token to use as collateral to borrow ETH.

Specification

Whitelisting new collateral on the Tribe Convex Fuse Pool (Pool 156) through OA.

A DAO vote will also be created to seed ETH in Tribe Convex Fuse Pool (Pool 156).

Whitelisting new collateral on the Tribe ETH Fuse Pool (Pool 146) through OA.

Voting

The proposal will use approval style voting:

  • Add Convex Staked CRV

  • Do not add Convex Staked CRV

  • Add Curve LP cvxCRV-CRV

  • Do not add Curve LP cvxCRV-CRV

  • Add Curve LP cvxFXS-FXS

  • Do not add Curve LP cvxFXS-FXS

  • Add Curve LP rETH-wstETH

  • Do not add Curve LP rETH-wstETH

  • Add Staked CVX

  • Do not add Staked CVX

  • Add Curve LP for sETH2-stETH

  • Do not add Curve LP for sETH2-stETH

  • Add 1000 ETH

  • Do not add 1000 eth

  • Add stETH

  • Do not add stETH

2 Likes
17

Amazing, thanks a lot for the updated proposal & looking forward to the vote !

1 Like
18

maybe Im confused but I dont think it should have been deleted. options with >50% of the vote (not >10M TRIBE) should advance to the DAO vote. not voting to approve an option = voting no on it. the quorum should not have been per option

1 Like
19

It seems like a good idea to have cancelled and resubmitted so people could explicitly vote no on specific pools.

To me the prior version was fine because it assumes no vote = no approval however there should also have been a “no change” option that is a secondary quorum threshold.

20

does snapshot allow casting of votes that select none of the options? if so then a “no change” option is not needed, the previous proposal would have been fine

multi-option voting has always been a confusing mess. we should create a mini guide of best practices for voters/proposers

3 Likes