@Samkazemian question about cost of bribes and v3. As crv

Question

@Samkazemian question about cost of bribes and v3. As crv

emissions come down and bribe markets become more efficient eg (1.00 spent gets 1.00 in emissions) with v3 coming online soon and new pools needing to be incentivized, I assume there is a point where frax will pay more for emissions to get the votes for its pools? Is this true? And I assume it's sustainable only because of the rwa asset strategy frax has and its cvx it holds that essentially give it a rebate. I remember you mentioning bribes essentially cost frax nothing. Is it fair to say that bribes will go up and costs go up but are sustainable because of the addition income frax v3 will produce?

#cryptocurrency #english #frax

0

21.08.2023

3 ответов

4 просмотра

AC T Автор вопроса

Sam Kazemian ¤⛓️¤
What do you mean by more for emissions to get the ...

Yea I think I understand now.. what your saying makes sense. I guess I got confused with the whole 1.00 in bribes paying for 1.00 in emissions. But crv and cvx price expanding fixes that. An yes certainly makes sense that the budget would be bigger for incentives as rwas come online

0

8 месяцев назад

Alunara

Bribes go up as long as they're cheaper than direct incentives, basically. Now Frax gauges have additional FXS emissions on top of the CRV + CVX so it's still profitable for them in particular even if $1 per spent on bribes would give $0.9 in emissions for non-Frax gauges. And, on top of that, because of the rebates you could say they'd even still make a profit if it was something like $0.8. Numbers aren't exact but give a general idea

0

8 месяцев назад

Sam Kazemian ¤⛓️¤ · Accepted Answer

What do you mean by more for emissions to get the votes? In theory, it woudn't make sense to pay more than $1 of bribes for under $1 of emissions since that is the point that you should just distribute the money directly to LPs rather than buying votes. However, if you mean that yield opportunities through RWAs and v3 will allow Frax to have a much bigger budget for Curve incentives, that is 100% true. I think the bigger budget moves the price of CRV and CVX. Not the other way around. When bribes go up, the CRV and CVX price rises (usually) because it's like an interest payment to veCRV and vlCVX holders. For example, look at Maker and how much revenue they are earning on RWAs. If Maker was as active as Frax and distributed that APR to the Curve ecosystem, there would be a lot of cash flow to CRV and CVX stakers.

209 похожих чатов

@Samkazemian question about cost of bribes and v3. As crv

3 ответов

Похожие вопросы