Proposal: Meta-governance - CRV/CVX (Convex)

Proposals
1

Status: Draft
Authors: @Eswak

Hi everyone! I have been working on “meta-governance” recently, meaning that our DAO will be able to use TRIBE to proxy-vote in other DAOs using the governance tokens held in the PCV, or more generally “play the game” of other protocols in a way that favor the Tribe. As of today, we hold AAVE, ANGLE, BAL, COMP, CRV, CVX, INDEX, and TOKE. I will release each meta-governance updates separately (1 token/protocol each time) to create a clean forum thread to discuss the proposed strategy each time, and introduce new contracts in the system gradually.

Context
The DAO currently deploy 50M$ in the d3pool on Convex. We have farmed 76k CRV and 13k CVX (total 602k$) so far, and will soon farm more thanks to the bribes we put in place. The FEI metapool on Curve is incentivized and attracts 220M$ TVL.

Convex is a protocol that farms CRV emissions, Curve protocol’s liquidity mining program. Curve is an AMM where users can vote-escrow (lock) their CRV tokens to get veCRV. The veCRV tokens decide where CRV LM reward emissions are distributed, through a gauge system, and get a share of the protocol’s trading fees distributed as a dividend every week.

Summary

  • Allow permissionless movement of CRV and CVX farmed by our Convex PCVDeposit to a new CVX delegator contract.
  • The CVX delegator contract does a snapshot delegation to a target address, and “plays the Convex game” (more details below).
  • CVX holdings will be reported in the Collateralization Ratio Oracle and visible on the analytics page.
  • The DAO and OA Timelock can change the CVX delegatee.
  • Initial delegatee of the protocol’s CVX tokens to be discussed in this thread before voting.

Motivation
The CVX tokens are a powerful tool to direct more incentives towards pools that contain FEI, so we should use them to increase FEI demand.

Specification
Delegatee of the protocol’s CVX tokens have to be an externally-owned account, because they need to be able to vote on Snapshot every two weeks, when Convex vote happens to determine the vote on gauge weights. Holding CVX voting power is something that can be bribed, so I think it should go to someone that the community trusts. If you feel like you’d make a good CVX delegate, please speak up :slight_smile:

To “play the Convex game”, the protocol will do the following :

  • Lock CVX tokens (has to be renewed every 16 weeks)
    • This will grant voting power on snapshots, and yield cvxCRV rewards, see below
  • Permanently lock CRV tokens to get cvxCRV tokens
  • Stake its cvxCRV tokens
    • This will earn an income of CRV, CVX, and 3pool tokens. CRV will be locked for more cvxCRV, CVX will be locked for 16 weeks, and the 3pool tokens will be kept on the contract for now. Later, we can use the 3pool tokens to redeem DAI, or use them to provide liquidity in the FEI metapool.

Voting
The proposal will use simple choice voting. Voting options :

  • Yes, use CRV/CVX as described
  • No, more discussions needed
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