[Proposal] Bribe on Votium for the d3pool

Proposals
1

FIP-XX
Status: Draft
Author: @Eswak

Summary
Modify the TribalChief rewards like the following :

  • Add 250 AP for Votium bribes on the d3pool (FEI, FRAX, alUSD)
  • Remove 250 AP from the Curve FEI+3CRV

Motivation
Votium currently offers a >4 leverage on bribes : 1$ spent on bribes directs more than 4$ of rewards towards our chosen pool, so it is more efficient than doing simple LM rewards through the TribalChief.

Moreover, the protocol owns ~43% of the d3pool liquidity (50M$), so spending bribes on this pool is currently a positive return for the protocol (1$ spent => 4$ rewards in the pool => 0.43*4$=1.73$ of rewards for the protocol). It is somewhat equivalent to doing an OTC of TRIBE for a mix of CRV and CVX, at an advantageous price. Increased rewards will attract more liquidity to the pool, i.e. user circulating FEI.

The 250 AP will make a bribe with ~350k TRIBE per epoch of 2 weeks at current rates.

Specification

  • Deploy a new VotiumBriber contract
  • Deploy a new StakedTokenWrapper contract with 250 AP that will send TRIBE rewards from the TribalChief to the new VotiumBriber contract
  • Create a new VOTIUM_BRIBE_ADMIN_ROLE role that can call the VotiumBriber to make bribes
  • Grant VOTIUM_BRIBE_ADMIN_ROLE to a multisig (TBD, see below)

Bribes are somewhat time-sensitive, snapshot votes on Convex open for 5 days, and bribes on Votium close 6 hours before that. We could make bribes a responsibility of the OA, but because it has a 3-days timelock, it makes the operation very time-sensitive, as we’d only have a 1.5 days window to queue/sign the tx. We could also create a lighter multisig with smaller responsibility & timelock. The worst that could happen is that the multisig bribes for the wrong pool, at no time would protocol funds be accessible to this lighter-responsibility multisig. What do you think ?

Currently, Fei Labs spends ~50k$ per epoch of 2 weeks from the Grants multisig to bribe for the d3pool. Frax and Alchemix offer similar FXS and ALCX incentives. The protocol currently earns ~300k-400k$ of CRV and CVX rewards per epoch of 2 weeks.

3 Likes
2

Making use of Votium is a no-brainer. The ROI will likely be even higher for subsequent votes, at least in the short term, because of the recent rise in CRV price. I won’t take a stance on the allocation between different gauge pools.

I would even support a much larger amount of bribes for pools where the protocol owns liquidity, since we can liquidate the rewards for a low-risk arb.

I think OA timelock is 4 days, so a new multisig seems to make more sense.

3 Likes
3

Including in FIP-59: TribalChief Allocation Adjustments - #12 by joey

4

I am in favor of using Votium. Seems like a much more optimal allocation.