@Samkazemian, why is the yield so low for locking crvUSDBP

for 3 years on Convex FRAX? Isn’t it great for the protocol if people commit long term to provide liquidity?

It’s very disappointing to lock there for 3 years at around 12% APR and a few weeks later seeing it drop to 6%. Not only that lower yield isn’t attractive anymore but if we don’t keep relocking our rewards keep dropping until we can withdraw.

If you drastically drop emissions, you should allow people to leave that product.

What happened to this product discourages me to lock for any other FRAX pair.

The APR is variable, not necessarily always going to be 12% or higher. Which exact Curve pool are you talking about? The FRAXBP pool?

CrvUSDBP on Convex FRAX, locked for 3 years. I understand yield could change because of more people providing liquidity, but that doesn’t seem to be the case. It’s very disappointing to commit for 3 years and see the yield tank while not being able to invest in other places that have become comparatively more attractive. I think the protocol should take care of those long term liquidity providers, as they are very beneficial for the system.

Yield is also a function of CRV price

Is this the FRAXUSDC pool staked in Convex? Sorry for asking twice, but I don't see the exact crvUSDBP LP token on Convex's site.

Sorry, I mean FRAX/crvUSD. 3.79%-6.29% current yield.

Ah yes ok that one. Ya I mean we have plans to continue to support the pool clearly. But the reason the yield is variable is exactly because we can't guarantee any specific amount since it's based on TVL, FXS price, CRV price, CVX price, and bribe amounts. We will vote slightly more for it this upcoming epoch, hopefully that should help a good amount 🙂

Thanks, Sam. I think it’s good for the protocol to reward the longer term lockers. Is it up to FRAX or to Convex to change the time multiplier? I think you should consider applying a higher multiplier than 2 for the 3 year pools. 2 may be fine for the old ones in which max lock was “just” a year, but now max lock implies 3 years, so the time multiplier should be higher too, maybe 6.

The time multiplier can be adjusted on gauge launch. The newer gauges we're working on the multiplier can be set by the person deploying the gauge. The only issue with being able to adjust the multiplier is that no one would ever lower it from what it is raised to. Imagine if rates go back to 0% in a few months. Then getting 6% on stable assets is a great deal. If it was able to be constantly set nonstop then there'd always be disagreements about the multiplier rather than it being fixed at deployment.

I understand. For future pools I think it would be better if the time multiplier was higher if max lock takes 3 years. As of now it’s not very attractive to lock for 3 years because yields can tank and you are stuck there. Either that or go back to 1 year max locks. I’d certainly leave that pool at current yield, but if time multiplier was 6, yield would be a bit more decent. For currently existing pools I imagine there’s nothing to do other than voting more for them when yields are low.

Noted. I also think that as macro yields change the cost and attractiveness of locked liquidity. Regardless though, feedback is entirely noted and we should make sure that everything is reasonable to the best of our ability.

Sure, the problem is that if yields become attractive, people just provide more liquidity with low or no time lock, which is bad for long term lockers. It’s like if for long term lockers yield was capped, as they trapped there. In regular pools, if yields drop you can just leave. This would be a smaller issue if you rewarded long term yields more. For example, in 1 year pools, the old ones, locking for a year is much more attractive as, at worst, you can leave relatively soon.

Perhaps we should consider putting the fraxcrvusd LP on Pendle so people have the tools to lock in a fixed rate yield 😬

Yes the new gauge system we're working on has NFT tokenized positions 🙂

Nft guage system