BIP 67. Emissions: Badger Locked CVX Sett

Category: Emissions

Scope: blCVX Sett emissions schedule.

Status: Community review.

TL;DR:

  • Reallocate half of the remaining bBTC and hBTC rewards from the current schedule as the initial locking incentives to the blCVX vault
  • Target 10% APR in Badger emissions after the initial locking incentives expire

==


With Convex vote locking going live, BadgerDAO is preparing to launch the Badger Locked CVX Sett, blCVX.

The plan is to have bCVX as the asset to deposit into the vault and have it locked periodically in order to provide a higher underlying yield on CVX and to participate in the gauge weight voting on Convex. Sett depositors would be receiving bcvxCRV rewards, Badger’s interest-bearing version of cvxCRV tokens.

Each locking event will imply that the CVX that’s being locked would be unavailable for withdrawal for 16 weeks.

After that, there will be a grace period of up to two weeks, when the unlocked CVX would still be able to participate in voting and receive elevated yield while being available for withdrawal. Then it would be relocked again.

The idea is to have the deposits open and have regular locking events. This means that once the unlocking starts to occur, the unlocked percentage of the Sett deposits will be available for withdrawal.

The longer-term emissions suggestion is to target 10% APR in Badger emissions for the vault, which will allow the rewards to scale better. For example, if during the week the blCVX dollar value increased 2x due to new deposits or CVX price appreciation, the Badger rewards for the next week would increase proportionally.

Launching the locked CVX Sett is a big step for the DAO that will allow us to bring more CRV and CVX rewards for the Convex Setts in the app.

To incentivize deposits into the Sett during the initial locking period, I suggest reallocating half of the remaining rewards from bBTC and hBTC Convex Setts from the current schedule.

Here’s how the schedule would change:



Out of all Convex Setts bBTC and hBTC have been the least cost-efficient for the DAO so far, and thus are suggested to be used as the source of initial blCVX locking rewards.



Implementation


blCVX Sett is currently under audit and needs to go through the guarded launch phase before it becomes open to the general public in the app.

As the precise launch date is unknown, the decision at hand is to reallocate 4842 Badger from the current schedule and emit it to the blCVX Sett during the first two weeks of its existence after the guarded phase.

Then the 10% targeted APR approach would go live. With the targeted APR implementation we suggest the DAO to commit to at least 6 months of matching the 10% APR, and keep it indefinitely until a further governance decision by the DAO.

The voting snapshot is planned to go live in 24 hrs to be on time for Thursday’s schedule change.

Reallocate half of hBTC and bBTC rewards for blCVX launch according to the schedule above, target 10% Badger APR for the Sett afterwards:
  • Yes
  • No

0 voters

A few things I’d like to see:

The flawed cvx/cvxCRV rewards distributed.
Regular distributions for the helper vaults

2 Likes

might vote no simply because there was no discussion here.

community needs to step up and talk more

1 Like

we’re having most of the discussion in the topic-specific rff channels now on Discord prior to the forum BIPs.

Those channels are open before the BIP gets published so that it’s easier to integrate the community’s feedback into it.