MDP24.2 - Strategy for Incentivized Liquidity Provision on Convex Finance

In line with MDP24.1 and this forum post, it is hereby proposed to decide on the strategy for the liquidity provision operation on Convex Finance.

This proposal suggests that 322,647 of the DAI currently held in the Asset Management subDAO be put into a Convex Finance liquidity position in order to begin accruing CRV & CVX tokens from the underlying Curve pools.

It is proposed to begin accruing CRV and CVX rewards from one of the following pools on Convex Finance:

Suggested Stablecoin Pools susdv2 alusd lusd frax

In the process of commencing with this opportunity on Convex Finance, the 322,647 DAI would be provided via single-sided liquidity, and consequently split up into the respective allocation of the chosen pool.

In its current form, it is proposed to harvest and compound 100% of all rewards from the position back into the same position via single-sided liquidity entry at a time that has desirable market conditions for the pool compared to the rest of the pool allocation, as to maximize the opportunity.

It is proposed to have the current Cat Herder liaison with the lead signer from the subDAO (@jwpe) on a bi-weekly basis to determine the right schedule on harvesting and compounding rewards, keep a curated transaction history of all events relating to this venture, and inform the wider mStable community and it’s stakeholders on the results on a quarterly basis in form of a Transparency Report designed for this purpose.

Successful passing of this proposal will allow the Asset Management subDAO to continue with this strategy until the incentivization on Convex Finance ends, or a different proposal be made to change the method or utilization of the tokens in question.

This proposal should be seen as a direct follow-up to a successful passing of MDP24.1, and will only be considered should the first part of the MDP close in favour.

The option with the most votes will be executed, even if it doesn't reach a majority, and voting for any of the pools presumes that the outlined strategy above is seen as acceptable.

On which pool should the Asset Management subDAO deploy 322,647 of the DAI it custodies on the Convex Finance platform?