[TEMP-CHECK] Deploy YB Bribes to Curve Pools Composed of YB Vault Tokens

Proposals
1

Summary:

Deploy a small portion of Curve’s YB bribe emission allotment towards a series of high fee rate Curve Liquidity Pools composed primarily of YB Vault Tokens in order to generate significant Curve DAO revenue while also making YB tokens easily tradeable even when YB Vault capacity is filled or when YB Vault withdrawal/deposit fees become too high.

Author:

Astral Protocol: Increasing liquidity provider returns through layered yield strategies, liquidity pools and yield bearing vault tokens.

Abstract:

Deploy and obtain Gauges for three new Curve liquidity pools on Ethereum Mainnet. Then allocate a budget of YB tokens to put towards bribing the three new YB Token Curve Pools for the next 6 months.

Motivation:

Since inception, Yield Basis Pools have been almost constantly at full Capacity while also having very high (3-15%+) deposit and withdrawal fees most of the time. Due to this, most users have been unable to profitably participate in Yield Basis.

By deploying and incentivizing Curve Liquidity for YB Vault tokens, Curve will be able to

1. Generate top-tier swap fees (1%-3%) on YB Vault token trade volume.

2. Make YB Vault tokens tradeable for everyone at a reasonable cost.

3. Create additional productive liquidity sinks for scrvUSD and CRV, which will support crvUSD peg stability and the long-term value growth and liquidity depth of CRV.

Specification:

Deploy Curve Volatile Tri-Pool: Mid-Fee of 0.5%, Out-Fee of 3%, A between 10000000 - 100000000, Fee-Gamma between 0.01 - 0.1, composed of WBTC/YB-WBTC/YB-cbBTC.

Deploy Curve Volatile Pool: Mid-Fee of 0.5%, Out-Fee of 3%, A between 10000000 - 100000000, Fee-Gamma between 0.01 - 0.1, composed of wstETH/YB-WETH.

Deploy Curve Volatile Pool: Mid-Fee of 1%, Out-Fee of 3%, A between 100000 - 10000000, Fee-Gamma between 0.01 - 0.1, composed of scrvUSD/YB-WBTC/YB-WETH.

Deploy Curve Volatile Pool: Mid-Fee of 1%, Out-Fee of 3%, A between 100000 - 10000000, Fee-Gamma between 0.002 - 0.1, composed of scrvUSD/YB-cbBTC/CRV OR asdCRV (Using CRV carries the advantage of providing a direct CRV liquidity sink, while using asdCRV carries the advantage of greatly increasing Liquidity Provider returns through asdCRV’s embedded yield).

For:

  1. Increase Curve Protocol Revenue.
  2. Increase YB Vault Token Trade-Ability.
  3. Increase crvUSD Peg Stability
  4. Support long-term value growth and liquidity depth of CRV

Against:

Loss of a small portion of Curve’s YB Bribe allotment that could potentially be more effectively utilized elsewhere.

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