to achieve peg like cvx does with cvxCRV: CRV, do you expect to have a cvxFXS:FXS pool off the bat? A gauge is likely to be a given bc of the partnership...so would then FRAX incentivize 2 pools rather than your current 1?
Yes and yes. Big FXS incentives to the cvxFXS-FXS Curve pool. I expect pretty high yields there. veFXS itself is currently yielding 23% APY so cvxFXS, if it existed right now, would be earning that as base cash flow, then on top of that you'd have the CRV gauge, then the FXS rewards on top of that, then the CVX rewards on top of that. 🤑
Curious if you can provide some thoughts on how cvxFXS will be beneficial for existing CVX holders, are you able to expand on that?
I think it should benefit CVX holders a lot. Convex basically becomes the main derivative issuer of veFXS which is a big deal. It's like how LIDO is trying to make stETH pegged to ETH and used everywhere so that people can stake ETH with LIDO and get a tokenized version of ETH that is almost as good+pegged to 1 ETH. This is like that but for staked FXS. Not only is it a money maker for Convex to be able to issue a veFXS derivative like they do with veCRV but it makes CVX holders one of the largest de facto owners of the Frax protocol.
Thanks - I absolutely agree but ultimately more beneficial for the convex protocol, not specifically cvx token holders right or am i missing something
I think those are the same thing are they not? CVX token holders literally own and govern the Convex Protocol.
the liquid locked version of veCRV is cvxCRV. but the liquid locked version of veFXS may not be cvxFXS. I thought there is a chance the dev decided to use a different token with new tokenomics so it would be aaaFXS instead
Well I just wasn't sure whether it would be more of a money maker for cvxFXS holders as opposed to cvx holders itself
Any derivative issued by a protocol is rehypothecation by that protocol which dramatically benefits the governance token holders of that platform. It's basically like being able to use the value twice by tokenizing it again.
This implies that CVX will have a potential voice in FRAX governance. Is that true?
CVX holders become the de facto owners/governors of how to use Convex's veFXS like veCRV. The exact mechanism is obviously not decided by me or FRAX but by the Convex devs and CVX token holders but the answer should be yes I believe.
Understood. I must say, the implications of this association are starting to make me really bullish for FXS when previously Ive had concerns about adoption and loss of first mover advantage . Aligning yourself with convex, and permitting CVX to have a role in FXS governance, as a potential pivotal protocol in Defi opens up potentialy unique opportunities to FXS as an extension of CVX
Can't wait for this, as a CVX holder and FXS holder. 🙂
Yeah, cvxFXS lockers or whatever mechanism they end up with would have a lot of leverage; I view it as a good thing honestly, and right now the veFXS lock boost ratio to pools doesn't work well unless you're a megawhale, from my understanding, so I'd like to see CVX enable us FXS holders to lock with them and get max incentives, while helping FRAX grow.
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