Scope: Highlight bveCVX and sunset bCVX
- Change all Convex Sett emissions to be done in blCVX
- Offer fee + gas rebates for users to migrate
- $200,000 in CVX for bveCVX/CVX curve pool
bCVX was created as a solution for putting CVX to work in the badger ecosystem. CVX locking or voting hadnt been deployed at that time so the main job of bCVX was so that badger could emit a productive version of CVX by taking all accrued emissions, selling for CVX, and using to autocompound the vault.
Now that CVX has launched their lock based voting and badger has launched a locked CVX vault (bveCVX) bCVX is suboptimal for users since it earns lower base yield from Convex, lower BADGER emissions and doesn’t benefit from the votium or vlCRV based bribing ecosystems. It is also suboptimal for Vault depositors and dao members as there is CVX in the badger ecosystem that is not contributing to Badgers CVX vote weight. With this in mind I am proposing to stop supporting the bCVX Sett in favor if blVCX.
The potential downside for users with blCVX is that it is not freely withdrawable. Once the first deposited CVX begin unlocking in ~15 weeks there will be capacity for users to withdrawal but no guarantee theyll be able to withdrawal their full deposit amount all at once. Since users that only receive blCVX as emissions are not explicitly opting into locking their CVX we also think it is important to support an exit option. To address this I am proposing to use $200,000 worth of CVX from the treasury to add to a bveCVX/CVX curve pool that will enhance the liquidity of the pool and give those that may not want their assets a way to reliably exit the vault. The treasury will retain control of this liquidity. Once this is launched we will advocate for it to be added to Convex, allowing Badger to vote for including it in CRV emissions, creating even deeper liquidity.
Once the change in emissions is made, it is important to get bCVX holders migrated into bveCVX. To address this I am proposing a migration rebate window of 10 days after bCVX emissions stop. At the end of that two weeks, within a subsequent 14 days (so by 24 days from bCVX emissions ending) there will be a rebate for all bCVX withdrawal fees for users that then deposited to bveCVX (.1% of the smaller of total bCVX withdrawals since bveCVX went live and bveCVX balance at time of snapshot). Users will also be eligible for up to 2 gas rebates paid in BADGER.
Once the bveCVX/CVX curve pool is live we will be looking at how liquidity could be improved through voting, bribing, and/or an LP vault. Please join the discussion in the bCVX migration rff channel if you would like to weigh in.