Summary:

Over the 15 or so months that Clever has been in operation it has shown continuous growth in all conditions (currently > 2.5M CVX locked, and 2nd place on the daocvx leaderboard! 3). Even still, the team regularly reviews the state of the system, looking for ways to improve and adjustments we might make to help supercharge CLever.

Motivation:

As CLever CVX is still in an early stage, the most important thing is to grow deposits. In general the growth rate of deposits in CLever CVX is limited by the rate at which CVX flows into the clevCVX/CVX LP. This CVX inflow can be considered the supply to be matched with the borrowers’ demand. CVX flow rate into the LP is determined by the combination of the furnace burn rate and the rewards yields in the LP and the abcCVX vault. Since furnace burn rate is determined outside of CLever (by the Convex yields), the simplest and most powerful way to support CLever CVX growth is to increase yields in the LP and the abcCVX farming vault.

The team has put together a proposal to do just that by cutting CLEV emissions in half, and by doing so dramatically reduce the ongoing sell pressure on the CLEV token. Effective yield rates for both the clevCVX/CVX LP as well as the abcCVX farming vault increase as the price responds. A nice side effect of this plan is that better price support also helps to bring more attention to CLever, contributing all around to growth.

Proposal:

The team proposes the following:

1. Aladdin will allocate some of its available treasury to CVX which will be used to vote for clevCVX/CVX LP emissions
2. Using savings from (1), CLEV emissions each bribe epoch will be reduced by 500
3. veCLEV revenue sharing should be reduced from 75% of total revenue to 50% of total revenue
4. By allocating all of CLever’s non-shared revenue (50% of total) to bribing in the clevCVX/CVX LP, we can reduce CLEV emissions by a further 840 per bribe epoch

Steps 1+2 are quite straightforward and are simply Aladdin using its resources to support growth of CLever. Steps 3+4 represent more of a structural change, but by harnessing more of CLever’s revenue to drive its growth, veCLEV holders have a better chance to earn more in the long run. CLEV price support also helps compensate for near term reductions in revenue sharing, as the CLEV boost earned by veCLEV farmers becomes more valuable.

Ultimately we believe the price of CLEV and the long-term revenue entitlement for veCLEV will be driven much more strongly by the overall growth potential of the platform than the particulars of the tokenomics, so that is where the team’s focus is.

FOR: I support the CLEV emission cut and revenue changes Against: I do not support this.