Vote 019A: Whitelist BUSD-3CRV Convex strategy for use in Gro protocol

TLDR: This proposal sets out selected Convex strategies for whitelist and approval for use in Gro protocol

Original community forum post here: https://community.gro.xyz/t/rfc-expand-gro-protocol-s-strategy-whitelist/363

Background and summary

• Gro DAO whitelisted 6 strategies in May 2022 and another 4 strategies in July 2022 for Gro protocol to use
• Proposal for the DAO to whitelist further strategies
• Protocol funds will continue to be allocated in accordance with the existing framework of (1) pool depth and (2) yield, as set out in the Gro protocol docs

Vote 019A: Whitelist BUSD-3CRV Convex strategy for use in Gro protocol

Gro protocol has been primarily designed to use Convex pool strategies following Gro DAO Vote 009. All these strategies pair 3CRV with a different stablecoin, meaning that a strategy has full exposure to each of the 3CRV assets plus whichever stablecoin is also in the pool.

Proposal that Gro DAO approves BUSD-3CRV Convex strategy for use in Gro protocol with (1) a maximum Vault exposure of 50% and (2) a stop-loss in place in case of significant de-peg

More information on BUSD

• BUSD has been live since Sept 2019. It has a market capitalization of 17B as of June 2022 based on the latest monthly attestation report (https://paxos.com/attestations/).
• Founded in 2017, Binance is the largest centralized exchange now with 13B daily trading volume, according to CoinMarketCap (https://coinmarketcap.com/exchanges/binance/).
• Paxos is a regulated crypto brokerage that offers custody, settlement, OTC and stablecoin payments.
• Link to pool: https://curve.fi/busdv2 (pool depth: $45m as at 10th Aug)
• Current Convex yield 4.58% (as at 10th Aug)

Voting process

FOR: Approve the strategy for whitelist on Gro protocol AGAINST: Do not approve the strategy for whitelist on Gro protocol ABSTAIN: No opinion on approving this strategy for whitelist on Gro protocol

Next steps

This vote will run for 3 days.

Each strategy that receives majority approval (ignoring abstain votes) will be added to the protocol whitelist, meaning there is DAO authority to allocate protocol funds (within the maximum Vault exposures).

Future strategies can be suggested and voted on by the DAO, and at any time community members can also propose a removal of a strategy from the current whitelist.