The more yveCRV the better for the YFI ecosystem through boosting all Curve vaults.
We need to incentivise CRV/yveCRV pool liquidity to encourage more CRV conversion to yveCRV. If people can see a route back out of yveCRV they will be more likely to enter yveCRV vault.
A mechanism could be taking advantage of the integration with $CREAM.
Recommend:
CRV/yveCRV pool incentivised swap pool on CREAM with $CREAM rewards
USDC or YUSD / yveCRV pool incentivised swap pool on CREAM with $CREAM rewards
If not CREAM, even better would be persuading Curve…although it might be a stretch to call yveCRV/CRV a stable pool… I think it would be in Curve’s interest too as it would slow the sell pressure on $CRV also.
A slightly different option I discussed with someone in the discord yesterday would be offering staking for yveCRV/CRV Uniswap LP in the pickle/dill gauges, so you can stake that LP pair and then some amount of PICKLE rewards flow to those stakers.
Also worth mentioning here that someone brought up the valid point that yveCRV would need to be wrapped, else the 3crv rewards wouldn’t be claimable from the Uniswap LP pair.
So…a yveCRV yVault sometime in the future? Harvest admin 3crv payments, sell it for more CRV, deposit for more yveCRV, deposit that into the yVault.
Only issue I see is people trying to time the harvest calls if they only occur every few weeks or less, but we could get around this by a slower release of the funds into the yVault, or just roll with it and accept that there will be market volatility around this time like with AMPL’s rebases.
Another interesting possibility for a yyveCRV vault enabling a CRV<>yyveCRV trading pair - if yveCRV is trading at a substantial discount to CRV, the vault could use its earned 3CRV LP tokens to buyback yyveCRV from the market and redistribute to vault depositors instead of buying and depositing CRV.