Curve Incentives

Now that the protocol has a gauge on Curve, it is time to think of the best ways to get CRV incentives here.

Following the results of the past Snapshot votes, we have currently been incentivizing the Curve pool directly with ANGLE tokens. From a protocol perspective, it could be more interesting to try getting more CRV rewards on the Curve pool by bribing on Convex voters to allocate a portion of their voting power to the 3EUR Pool.

This has been known to be super cost effective in the past (it won’t maybe remain as effective in the future) but the multiplier effect is still greater than 1: for 1$ of ANGLE invested, we should expect LPs of the pool to receive > 1$ of CRV and CVX rewards. In the past, the multiplier was on average 4x (Llama Airforce).

The next Convex vote will start on the 9th of December and at the same time a round of incentives will start on Votium. The idea would be to use some of the emissions scheduled as part of the liquidity mining program for bribing on Votium. Bribes on Votium are airdropped at the end of the vote (in this case on the 15th or on the 16th), and the vote takes effect on the 15th of December and Convex weights will remain as is till the 29th of December.

Some considerations:

  • if we use some of the incentives for the liquidity mining of the week of the 8th of the december for the bribes, then the APR will be decreased during that week and we may see some people leaving the protocol (the sell pressure on the Angle will be reduced)
  • given that bribes take place every two weeks, it makes sense to use for the bribes incentives from the week of the 15th to the 22nd to gain more weight. One issue if we do so is that on the 15th, a portion of the rewards that should normally be released during the week would directly be released

What I propose is that given the cost effectiveness of this, instead of keeping the incentives on the Curve pool (which were needed to bootstrap it and get the gauge), we should now switch a big portion of it (if not all of it) to Convex/Votium!
A portion of the rewards of the week of the 8th of December and of the week of the 15th of December should be allocated to Convex.

Happy to hear your thoughts and to see how you would calibrate that, like what % of the emissions should we put on Votium


I think it’s a great idea to use resources available in order to attract non-Angle rewards for agEUR, so I’m all for using Votium for this!

Capital is very fluid in DeFi, so if the incentives are removed from the 3EUR pool, there’s a high likeliness that users will move away for that week, reducing the liquidity in this pool that has been built up, which would be inefficient to build back up.

If this bribe is successful, the 3EUR pool will eventually generate CRV and potentially CVX incentives, meaning it will require fewer Angle incentives indeed. It will be easier to reduce Angle rewards by then. In the meantime however, I think the incentive that is least useful for Angle’s vision is the pure agEUR staking, because unlike other incentivised strategies, this does not increase the usability of agEUR ; it just generates occasional minting/redemption fees for the protocol.

73% of agEUR are there doing nothing (over €100M). Equally, that is the one that is consuming most ANGLE as well.

I would think therefore that reducing rewards from this single agEUR strategy will be the easiest, and sets a better precedent, as the impact would be quite low (actually nearly irrelevant). At the end of the day, we should hope that all incentivised agEUR would be in useful pools and the pure agEUR staking will actually be removed or minimal eventually.

Concretely, last week agEUR had 48.56% of rewards, and 3EUR had 6.12%.
Moving agEUR from 48.5% to say 44% for example only reduces the rewards on that single staking by ~2%, which is too low for people to leave, and it might drive more agEUR towards useful options (Curve being amongst the most useful today, and hopefully soon more forex options!)

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You’re right, we should not reduce the incentives on the Curve pool right away, a portion should stay there at least till we have a significant amount of CRV rewards coming on it

agree, it’s fine to reduce, maybe even halve them, and take the rest from agEUR single staking