Thread for encouraging ideas & discussion on optimizing ibXXX stablecoin pools on Curve. A full list of current Curve pools is included in the “Background” section below.
Members of the team or community are encouraged to suggest, discuss or debate possible new implementations.
- ibEUR + sEUR (Gauge Address, Curve link). A=100, Future A=100
- agEUR + ibEUR (Gauge Address, Curve link). A=200, Future A=200
- ibEUR + USDC (Gauge Address, Curve link). Gamma=0.0001000000, A=200000000
- ibCHF + sCHF (Gauge Address, Curve link). A=100, Future A=100
- ibCHF + USDC (Gauge Address, Curve link). Gamma=0.0001000000, A=200000000
- ibGBP + sGBP (Gauge Address, Curve link). A=100, Future A=100
- ibGBP + USDC (Gauge Address, Curve link). Gamma=0.0001000000, A=200000000
- ibAUD + sAUD (Gauge Address, Curve link). A=100, Future A=100
- ibAUD + USDC (Gauge Address, Curve link). Gamma=0.0001000000, A=200000000
- ibJPY + sJPY (Gauge Address, Curve link). A=100, Future A=100
- ibJPY + USDC (Gauge Address, Curve link). Gamma=0.0001000000, A=200000000
- ibKRW + sKRW (Gauge Address, Curve link). A=100, Future A=100
- ibKRW + USDC (Gauge Address, Curve link). Gamma=0.0001000000, A=200000000
The Keep3r protocol comes under pressure in two main areas with regards to liquidity pools on Curve;
1. Attracting liquidity
2. Maintaining balance of assets in pools
1. Attracting Liquidity;
Keep3r has two main methods of attracting liquidity to pools. These are;
- Incentivizing the pool by utilizing treasury-held gauge vote directing assets (such as veCRV or vlCVX) to ensure new CRV emissions are directed to pools containing Fixed Forex assets
- Further incentivizing the pool by directing new KP3R token emissions to the pool in the form of rKP3R
For the first of these two methods, the main challenge is the strain it puts the protocol under to accumulate gauge vote directing assets, in particular, this is a challenge due to the number of stables and pools that have to be supported. The protocol acquired 798,701 CVX tokens at a total cost of $21.4m between 19th December 21 & 24th March 22, and acquired 552,196 CRV at a total cost of $1.5m in April 22.
On the second, the main impacts will be on the relative market price of the KP3R token (at a basic level, higher volume of available token = lower price) but is also further impacted by the volume of emissions allocated to incentive curve pools (determined by the Multisig) & by the lack of aligned incentives for current vKP3R holders to direct new rKP3R allocations to each pool (issue further discussed in this forum post)
A further issue arises where the assets pooled alongside Fixed Forex stables are not currently being incentivized either on the CRV emission side or, in some cases, at all by the protocols that own the assets on the other side of the pool. A short summary;
- ANGLE only currently incentivizes the agEUR + ibEUR pool with ANGLE tokens (i.e. no CRV emissions directed to this pool)
- For USDC paired pools, Circle does not contribute any kind of incentives at all
- For Synthetix assets (i.e. sEUR, etc.) there are no SNX rewards allocated to the pools
2. Maintaining balance of assets in pools;
The challenge of maintaining a balance of assets in each pool is further explained and outlined in this forum post with an expectation that when imbalances occur there are either clear methods incentivizing users to restore the peg or the protocol takes on this burden
Please use the comments section below to add any new suggestions, or to debate any suggestions proposed by other community members.
It would be helpful if you could indicate what benefits, risks or supplementary steps should be taken to ensure peg of adjusted pools.