CIP #8 - Final liquidity reshaping

—- Summary -—

Proceed to the final liquidity reshaping.

—- Rationale -—

Since the first liquidity reshaping, the CVG/FRAXBP is the main liquidity for CVG. For the record, this decision has been taken because of the poor liquidity efficiency offered by the triCVG pool.

The CVG/FRAXBP pool was initially meant to be a secondary pool, which would be a great source of yield once on Convex/Frax while allowing people to buy with stablecoins. However, most DEX aggregators seem to have issues routing with FRAXBP.

To bring more convenience and accessibility to the CVG token, we propose to seed a CVG/ETH pool on Curve.

50k worth of Protocol Owned Liquidity will be kept within the CVG/FRAXBP pool. We’ll then seek a gauge on Frax, and max lock our liquidity on Convex/Frax to maximize our CRV, CVX, and FXS earnings from this pool. Vote incentives will still be issued for the CVG/FRAXBP pool, even though they’ll be reduced.

The rest of the liquidity, plus 50k worth of LP (to keep the same liquidity density that we have now), will be used to seed the CVG/ETH pool, which will then become the main pool.

Timeline: 03/07 ⇒ create the CVG/ETH pool, proceed to the liquidity shift, and push a gauge vote on Curve; 03/16 ⇒ issue vote incentive on Votemarket for the CVG/ETH pool.

—- Means -—

Create the CVG/ETH pool, withdraw funds from the CVG/FRAXBP, and seed the CVG/ETH pool.

—- Vote -—

1- Adopt the proposal; 2- Reject the proposal; 3- Abstain; 4- Do not take part in the vote.