The bcvxCRV Strategy is meant to auto-compound assets to increase the value of it’s shares.
After a review of our strategies, we found that the bcvxCVR strategy (cvxCRV Helper Strategy), is selling CVX for CRV.
This is in stark contrast with the DAO goals of locking as much CVX as possible to increase its voting power to maintain high yields on tokenized bitcoin.
Solution (already in works):
A simple solution, which the team can apply immediately is to simply emit bCVX (CVX Helper Vault), this will reduce the sell pressure and still redistribute yield to the token holders.
Because this doesn’t change the spirit of the Strategy, this change can take effect at no risk
Recommended Solution (what you’re voting on):
An alternative solution, which we’re proposing here, is to lock the CVX into bveCVX and then emit it as bveCVX (Badger Vested Escrow CVX), this means that every single CVX the DAO harvests will be locked, increasing the DAOs voting power, and in turn, the depositors yield on tokenized bitcoin.
This change has to be voted as it changes the “spirit” of the strategy from simple auto-compouding, to emitting a locked asset (which has emissions on it)
In terms of opportunity cost, the strategy should return slightly higher returns (as bveCVX is incentivized via BADGER emissions), however, it does expose depositors to CVXs market beta.
Personally, I believe this will massively help Badger DAO maintain its lockedCVX control, which as you’ve seen in recent times has allowed to vote stable yields on the DAOs main products.
Yes → Change bcvxCRV to Lock and Emit bveCVX
No → bcvxCRV Should not lock CVX