Allocate up to $5m worth of FXS to Votium for the bi-weekly Convex Gauge-Weight Vote

Authors

Jason Huan, Dennis, Sam Kazemian

Summary:

The previous November 11th Convex Votium bribe snapshot continuously allocated up to $2.5m worth of FXS for the bi-weekly Convex Gauge-Weight Vote to bribe for the FRAX3CRV gauge on votium. As the gauges have become more competitive recently, with an expected increase in bribe amounts from other protocols, we are proposing to increase the bribe up to $5m worth of FXS at comptroller discretion. Note that this is simply the maximum amount, and not necessarily the exact amount that will be bribed on Votium.

Background & Motivation:

The Curve pool gauge-weight vote is voted on by veCRV holders, of which Convex holds roughly half the circulating supply. Convex allows holders of vlCVX (vote-locked CVX) to vote on how the platform's veCRV should be allocated.

Votium allows for anyone to create a bribe for vlCVX holders for a specific gauge, claimable upon voting in Convex's bi-weekly snapshot allocation.

Frax currently has 28.8% of Convex's entire veCRV amount in the Curve gauge-weight vote, up from 15.1% two periods ago. Convex's veCRV gauge allocation is re-weighted every other week, with the current vote ending on November 15th. To defend our allocation, we propose increasing the bribes to up to $5m worth of FXS at comptroller discretion. Rewards from increased gauge APR will be distributed across all FXS holders due to FXS1559 buying back FXS with protocol profit.

As this has been on onging allocation, the change would carry forward to future Convex gauge weight voting periods.

For: Approve allocation Against: Do nothing