CIP - 001 Congruent DAO cCRV Grant

Summary:

We are currently recruiting a four-person operations team for the launch-phase of cCRV. After reviewing the application from DAO members, applicants were shortlisted, and the proposal is as below:

Project details:

Why is cCRV worth devoting so much of your time and effort? cCRV is Congruent DAO’s bold move into the Curve Wars by creating a flywheel for Convex, followed by Phase 2, which will optimise the Curve gauge. While cCRV will work very closely with Curve, our added value is identifying problems, and then conducting research and extensive product design to come up with innovative solutions that generate profit in the process.

Once cCRV hits its stride, it will have become an indispensable partner to the largest platform in DeFi, Curve, which, in turn, means long-term, sustainable profits for cCRV that can then be returned back to the Congruent DAO community. Indeed, we have lofty goals beyond just supporting CongruentDAO.

Based on a review of the qualifications of interested individuals from the DAO server, we have selected the following 4 individuals to join the cCRV operations team.

Ouija Duties: Operation/Marketing

-Arrange and attend AMA/Roundtable meetings on behalf of Congruent & cCRV

-Research into CRV/CVX related projects and prepare medium articles for cCRV (Weekly basis)

-Prepare the weekly yield report.

-Provide the community with insightful opinions.

-Prepare for the AMA for the internal community.

…….

DTMikeD Duties: Operation/Guidance

-Arrange the content for Twitter.

-Prepare the direction for users.

-Overlook the platforms that need to get listed and be responsible for the preparation works.

-Direct community with insightful opinions.

-Prepare for the AMA for the internal community.

…….

Necro Duties: Operation/Management/Guidance

-Manage the discord channel and assist community members and establish a positive culture in the community.

-Mod FUD on the social media (Twitter)

-Assist in preparing up the direction for users

-Assist in preparing the information for platforms (CMC, Debank etc)

-Assist with content creation and AMA for the internal community.

…….

AtomB Duties: Operation/Guidance/Investigation

-Arrange and attend AMA/Roundtable meetings on behalf of Congruent & cCRV

-Assist Research into CRV/CVX related projects and prepare medium articles for cCRV (Weekly basis)

-Provide the community with insightful opinions.

-Assist the AMA for the internal community.

-Investigation (I will find you)

……

Post-Grant team objectives:

The allocated Grants of USD$25,000 + 10 Gaas are based on a 4-month plan.

Rewards will be distributed once the milestones for each phase have been achieved and will be shared amongst the four operations members.

Stage 1: USD$6,000 + 2 Gaas

Target: 1 million cCRV in circulation Target: cCRV-CRV peg of no lower than 0.97 Stage 2: USD$8,000 + 4 Gaas

Target: TVL > $6m Target: A cCRV-CRV peg of no lower than 0.96 Stage 3: USD$11,000 + 4 Gaas (only need to achieve 3 of 4 targets)

Target: 3 million cCRV in circulation Target: cCRV Phase 2 plan release Target: At least USD$10,000 3crv distributed weekly to vGaas holders Target: Whitelist approval via Curve DAO vote(lock veCRV by smart contract) Product details:

Our aim is to create good liquidity for the Tri-CRV pool and to secure CRV emissions so that we can continue to convert more CRV to cvxCRV, thereby increasing the veCRV/vlCRV ratio and driving the Convex flywheel. So, what had previously required users to actively move their CRV to Convex and convert to cvxCRV, cCRV now automates this process by taking CRV emissions and automatically converting them to cvxCRV and then staking.

To create the cCRV+cvxCRV+CRV tri-pool CRV will be converted and staked for cvxCRV on Convex. Congruent will then mint cCRV at a 1:1 ratio with cvxCRV, helping to mitigate impermanent loss. The flywheel is simple, it works by incentivizing votes on the tri-pool via cCRV, this creates CRV emissions, those emissions are then re-staked and converted to cvxCRV and so more cCRV is minted. Round and round we go! This will help generate liquidity for cCRV, enable Convex to pay less bribes on their cvxCRV pool and so tighten the cvxCRV-CRV peg.

How does the project align the Congruent policy or treasury strategy? Is it acting as a stable reserve, yield generator, or providing some other utility?

The project serves to help the DeFi ecosystem in a fashion that benefits all participants. It operates to provide utility to cvxCRV while acting as a yield generator, strengthening Congruent DAO’s treasury allocations in particular CVX and CRV, making them more stable and economic as investments. cCRV will return profit in the form of 3CRV to Gaas holders and help contribute to Congurent’s treasury.

What risks exist with using the protocol?

cCRV has been audited already and has safety mechanisms in place to prevent exploitation. However, risks remain in Curve and Convex although reduced. (Risk: low/medium)

What would the impact be to Congruent if the protocol’s token values were to drop substantially.

Nothing. The product operates separately to Congruent DAO, instead it yields value to it, the reverse is not true. Risk remains with initial investment.

What can be done within the protocol to mitigate risks?

By constant monitoring by the cCRV team, working with devs from convex and helping to benefit other protocols with their allocations but also exploring DeFi through Twitter spaces and other platforms risks may be mitigated. Additionally the product features a multi-sig 4/7 which will serve as a safeguard to any bad actors with access to signer addresses.

Are there external options available to mitigate the risk associated with the protocol? (option hedges, insurance, opposite plays).

Additional groups such as https://cryptorisks.substack.com/ 2 may be used to have third parties assess the product, in conjunction with audits that have already been performed we can further assess the risk associated with the protocol and actively move to reduce them.

How would you rate the overall risk profile of the protocol? How does the risk compare to other whitelisted protocols or treasury assets?

The product helps to strengthen Curve, the biggest platform in the DeFi space with the best long term implications, Convex is another party that benefits, all without competitors. We have been given the “nod” by particular devs associated with these protocols. By taking this approach and considering the points already mentioned above, the overall risk profile should be lowered. (Risk: low/medium)

Vote Details: Minimum required quorum - 9% of circulating supply Minimum required affirmative vote to pass - 50% in favour Users who hold vGaas are able to vote.

The voting lasts for 72 hours. Yes - Represents “Agree” No - Represents “Disagree”