[Convex] Curve Protocol Treasury fee changes

Summary

• Set the 2% Treasury fee to send 2% of all protocol acquired CRV tokens to the treasury vault.
• All tokens acquired by the treasury can be used to swap for cvxCRV as long as the swap ratio is favorable to do so.
• When unfavorable to do so assets will be left in the treasury till such time as it is again favorable to swap for cvxCRV.
• cvxCRV acquired by the Treasury will be staked on behalf of the new cvxCRV wrapper contract. This will increase rewards (e.g CRV, CVX, and 3CRV) to all those in the new wrapper, while removing the cvxCRV from circulation.

Abstract

Convex Finance will soon be adding a new wrapper contract for cvxCRV staking that will provide additional functionalities and incentives to direct staking of cvxCRV. To support this effort, Convex Finance is proposing to add a 2% treasury fee, while reducing other fees to maintain the 17% total protocol fee. Tokens acquired by the treasury can be used to swap for cvxCRV when the swap ratio is favorable, and staked against the cvxCRV wrapper, boosting overall rewards and removing cvxCRV from circulation.

Proposed Fee Changes:

• Reduce CRV fees given to cvx stakers to 4.5% from 5%.
• Additional CRV fees given exclusively to vote-locked CVX (Currently 1%) will be set to 0. Locked CVX will continue to receive staked CVX fees and cvxFXS fees.
• Reduce CRV fees given to harvest callers to 0.5% from 1%.
• Add a 2% CRV fee given to the Treasury.

These fee changes would maintain the overall protocol fee of 17%, and no change to CRV fee given to cvxCRV stakers. As an additional note to any future fee change proposals, Convex has an overall Curve fee maximum of 20%, with ranges set for each fee parameter as detailed in the documentation here: https://docs.convexfinance.com/convexfinance/faq/fees

Motivation

By adding this 2% CRV treasury fee, the Convex Finance protocol will continue to support the crv/cvxCRV swap ratio by removing cvxCRV from circulation when favorable to do so, and adding additional incentives to stake cvxCRV directly in the new wrapper contract as detailed in the latest blog post: https://medium.com/@convexfinance/january-2023-update-cvxcrv-staking-changes-c776447ca90c