Sep 2, 2021
September Update: Vote Locking Launch, Liquidity Provider Incentives, and more!
Vote locking is here!
CVX voting is finally here! CVX holders can now have their say in how Convex Finance allocates it’s veCRV voting power in the bi-weekly Curve.fi gauge weight votes. You can lock your CVX tokens in order to participate in the voting and receive the extra 1% fee from locking (5%+1%).
If you missed our previous article on the voting system and vote locking, please be sure to read it here. You can also read up in our docs to learn how the vote system functions. In summary:
- Lock your CVX tokens for a fixed period of time and gain voting power
- Vote for how Convex Finance allocates it’s veCRV votes in Curve.fi governance and gauge weight votes.
- Earn 20% more rewards vs. single staking CVX
Important Notes as vote-locking gets started
- The first Curve.fi gauge weight vote for CVX vote-lockers will be from the 16th-21st of September. In order to participate in this vote, users will need to vote-lock their CVX before 00:00 UTC September 16th.
- No need to immediately un-stake existing CVX and vote-lock. There is ample time between now and the deadline to participate in the first vote.
- Rewards for vote-locked CVX behave in the same way as rewards on other pools; there is a trailing 7-day distribution. At launch APR will start from zero and build up over time before normalizing.
- Vote-locker contracts are currently under review at Code 423n4.
Minor UI changes come with this update
- The “Use CVX” page is now “Lock CVX”. Single-staking CVX and Sushi LPs are now located on the “Stake” page and behave the same as before.
- The “Lock CVX” page houses all the new functions for vote-locking
Since launch, liquidity mining incentives in the form of CVX tokens have been allocated to liquidity providers in the cvxCRV/CRV Sushiswap pool, and the CVX/ETH Sushiswap pool via a modified Masterchef staking contract. Currently, 60% of these rewards go to the cvxCRV/CRV pool, and 40% go to the CVX/ETH pool.
We’re happy to announce cvxCRV/CRV LP incentives are moving to Curve stable-swap pool! Curve.fi factory pools allow anyone to create new liquidity pools with any token pair. Recently, a proposal to add a gauge for factory pool 22 : cvxCRV/CRV reached quorum on Curve governance and is anticipated to pass. Liquidity providers in this pool will soon be able to receive CRV incentives from Curve.fi platform token emissions. Going forward, the CVX incentives currently allocated to the Sushiswap pool will instead be allocated to the cvxCRV/CRV factory pool on Curve.fi.
Convex Finance aims to support all Curve.fi pools that have a gauge; this means the new cvxCRV/CRV pool will be available for deposit+stake on Convex, and potential to earn boosted CRV LP rewards + CVX tokens. This means cvxCRV/CRV LPs on Convex will be getting even more CVX than they were prior!
As a result, after the first 2 weeks of the gauge being live, the portion of CVX rewards coming from Liquidity Mining incentives for the cvxCRV/CRV pool will be reduced from 60% -> 30%. While this figure is being reduced, we anticipate that there will be a net increase to overall APR for cvxCRV/CRV LPs when accounting for CRV + CVX coming from Curve LP rewards. Additionally, the CVX/ETH Sushiswap pool incentives will be increased from 40% -> 50%.
These changes leave 20% of prior token incentives still un-allocated (approximately 3,400 CVX per day). Initially, these tokens will be looped back into the Masterchef contract. In the future, these tokens will be used to bootstrap new liquidity pools on the platform normalizing the effective returns on those new pools during their initial days eliminating/reducing the initial lag period.
Lastly, all figures / percentages stated are starting points, and subject to change before or after these changes go live.
Abracadabra!
Convex Finance <-> Abracadabra.money… Keep an eye on their twitter in the coming days/weeks!
As always, please join the Discord and Telegram to ask any and all questions, and follow the Convex Finance twitter!
