This proposal suggests the creation of a mixed vault across all curves stable coin pools. Considering the calculator for the gauge weights at Curve.fi (https://dao.curve.fi/minter/calc) the boost is dependent on the overall liquidity per pool that is provided. The yearn yVault is currently too large regarding the overall liquidity, to be able to achieve the maximum boost of 2.5x and this is exaggerated by the addition of the yETH vault.
The boost for receiving CRV tokens is is dependent on the overall liquidity per pool that is provided (https://dao.curve.fi/minter/calc). The yearn yVault is too large, to be able to achieve the maximum boost of 2.5x and this is exaggerated by the addition of the yETH vault. Locking up CRV to generate veCRV automatically applies a boost to all curve pools, but of course you need to add liquidity to the other pools in order to receive this boost.
Splitting the vault funds of either the yVault or/and the yETH vault across the different stable coin pools would reduce the provided overall liquidity to a single pool and enable the ability to achieve the maximum boost of 2.5x for multiple pools.
The weekly gauge weight vote at curve.fi (https://dao.curve.fi/gaugeweight) suggests that there will always be competing interests in more or less evenly distributing the rewards (regarding the overall liquidity, though the BUSD pool is clearly underperforming at the moment). With only the yVault, to achieve the maximum amount of CRV from the distribution, we would need to vote only for the y pool, this would incentivise other people of joining the curve y pool, which might result in less liquidity in the other curve pools (which might not be in the best interest of curve). Splitting the funds and the gauge weight votes would enable a higher boost (2.5x) and lead to an even distribution of liquidity within the curve pools.
Increase efficiency of the current liquidity via distributing it across the multiple stable coin pools of curve to receive a 2.5x boost on each of them. This effect will be more pronounced once the yETH vault reopens.
Currently yVault liquidity providers are rewarded with yCRV, splitting the liquidity across different pools will lead to a higher amount of generated CRV, this can in exchange be sold to increase the overall liquidity. LPs of the mixed vault might be rewarded in either a mix of the curve LP tokens (yCRV, ySUSD, yPAX, yCOMP) or a new combined token could be created which represents a mix of these LP tokens.
Gauge vote weight would be distributed across the different pools as well. Currently, external voters, who are not invested in the yVaults might vote against the y pool, which would cancel out some of our voting power. Splitting across multiple pools can increase the efficiency of our gauge weight voting power at the same time as increasing the boost to 2.5x. In the weekly gauge weight votes, we could wait until the majority of votes have been submitted and then distribute our voting power in a way that reflects our distributed liquidity.
- Enabling the maximum 2.5x boost on Curve for the yCRV and yETH vaults
- Distributing the vaults liquidity evenly across the Curve pools (can still be biased to one specific pool, e.g. y pool, depending on the overall liquidity), which will also be in the interest of Curve
- Gauge vote weight can be distributed across the different pools as well (external voters, who are not invested in the yVaults might vote against the y pool, which would cancel out some of our voting power, splitting across multiple pools can increase the efficiency of our gauge weight voting power at the same time.)
- Future proofing the rewards of the vault if the overall liquidity increases
- Might add complexity to the current system
- LPs of the mixed vault might need to be rewarded in either a mix of the curve LP tokens (yCRV, ySUSD, yPAX, yCOMP) or a new combined token would need to be created which represents a mix of these LP tokens.