Pursue a Curve Pool for Smart Yield Junior Tokens

Summary

Successful addition of a curve pool(s) for smart yield junior tokens to increase token liquidity.

Description

Curve pools are a material source of liquidity for many stable token swaps, exchanges and protocols. Creation of a Curve pool for smart yield junior tranches to promote additional liquidity for more desirable yields for senior tranches.

Motivation

Support junior token liquidity to provide favorable yields for senior tranches with the goal of increasing TVL, decentralization and fees generated for Barnbridge.

Technical details

Support within the Curve community will need to be developed and ultimately supported through a DAO proposal.

  • 2500 veCRV are required to create a new proposal.

Useful Links

Curve.fi

Argumentation

For

  • Additional liquidity for junior tokens will support more desirable yields for senior tokens
  • Additional yield in the form of swap fees, CRV rewards and BOND rewards for liquidity providers
  • BOND pool could become a farming target that could possibly kickstart a flywheel of additional liquidity (BOND farming could be a valid use case for a BOND airdrop)
  • Multiple lending platforms Barnbridge smart yield is launching with already have similar non-tranched asset pools listed.

Against

  • Token allocation might not be desirable for some members of the community
  • Competing asset pools separated by tranches might not be desirable to the Curve community.

DAO Vote

N/A

5 Likes

This could lead to some really interesting dynamics in liquidity. I can absolutely see it being very popular because of it’s base APY. Impact to the rest of the overall BB token ecosystem would be positive and it would maximize potential for the fungible tokens within it. I’d certainly like to hear more about this.

[Side question: What are these SMART Yield jTokens going to be named (ex. $jDAI)?]

Maybe someone deep within the Curve community can sort of see if Curve would be interested in the proposal about marketing and we find a way to align our communities with theirs. I like this idea but getting a proposal to vote something in makes me think we need to be talking to them since we can’t really control this at our DAO level.

2 Likes

This is a pretty cool idea. Would like to see this pushed. I agree with @lordtylerward that we will need to probably talk to someone over there.

2 Likes

Here is some feedback from the Curve discord:

Three routes available, the latter being the fastest:

  1. Create a sCIP on gov.curve.fi which is a suggestion to the development team to add a new pool/meta-pool.
  2. Take the existing code from a meta-pool and change it to your liking, deploy. This can be swapped on; but then a on-chain vote needs to be created for it to be receive CRV rewards.
  3. Create a new pool from crv.finance ; if it receives enough liquidity/volume it will be eligible and receive an on-chain vote created for it to receive rewards.

The last option requires it be based on 3pool or sBTC, but if that’s what you want is super simple.

I think we should at least move forward with #1. Once it’s written up, we can start campaigning to get it proposed.

We could certainly create a metapool: https://crv.finance/this isn’t what I thought it was, check it out

2 Likes