sned
Request for Comment - Curve v2 Pool Deployment
no need to discuss sned it panda bear
I await the first "nay".
In theory this V2 pool should be more capital efficient by a non trivial amount. I'm curious to see how much more efficient this will be in practice. Cheers! Keep up to good work!
Stoked about this next chapter for us.
yes please
Would our OHM/ETH from other protocols get migrated to Curve at some point in the future?
good. the more we are present , the better
It seems logical to test this out. Once, and if, the contracts are battle-tested, it would seem that the Curve v2 pools would be more advantageous for POL than the current arrangement on Sushiswap.
From investor perspective, my concern from this is the fragmentation of liquidity. Olympus' primary liquidity pool is supposedly OHM-DAI on Sushiswap. My recent experience is that even that liquidity sucks. Price impact from even pretty small swaps is too big. Was liquidity shifted elsewhere?
From protocol perspective, I assume its a balancing act of collecting revenue (seek non-crowded opportunities) versus providing liquidity (crowded position by nature). Also I assume that if liquidity fees (from swaps) is important, then having various smaller pools create price divergences, and this increases arb activity and thus fees to protocol (assuming protocol is dominant LP).
So, I dont care really what L1 platform is used (as long as its solid like Curve). I just wish I could find thick liquidity SOMEWHERE. And having liquidity spread out across multiple pairs/pools/platforms/networks is working against my wish.
bubbidubb this is a good point. $10m sounds like an ok amount to start with though? Is that less than 5% of treasury assets that actively being put to work? One question - if this is approved, does it give policy team freedom to then increase at the rate and size that they see fit or do they need to engage community again?
Regards the security of curve v2, it made me think that with the quality and size of team within Olympus now, would there be space for a division that went after bug bounties (or even get in the business of auditing code).. just putting it out there as a thought.
Go for it. Curve has gigabrain dev team. It is crucial to have deep liquidity there.
bubbidubb So we're going to be migrating out of sushiswap regardless. I do think that saying liquidity sucks is a bit odd given that it's quite literally the 6th deepest liquidity on ETH L1 on the entire sushiswap platform. I would look into batch transactions or using an aggregator. Back to the primary point, we will be moving to uniswap v3 for a more concentrated position on select LPs which should be more capital efficient.
For the purpose of Curve v2 is three fold: concentrated liquidity, RFV revenue generation and CVX accrual for governance utility/influence. In essence curve v2 should be better than your standard uniswap v2/sushiswap 0 -> infinity liquidity. In terms the actual amount, we're targeting a smaller amount at first to gain preliminary data on the fees, volume and liquidity utility in comparison to the other platform. Once approved for a gauge then the protocol will move forward to migrate a significant amount of liquidity to Curve. However, we will not put all of our liquidity in one place.
The ultimate goal for liquidity is to introduce stability then capital efficiency then an up ohmly scenario.
JohnD We're only going to put a small amount until we're approved for a gauge. Gauge first, governance approval second then a larger sum of liquidity deployed. The team will then monitor Curve v2 pool in comparison to uniswap v3 deployment to determine which is best for the protocol/users. It is important to note that it does not matter how much liquidity is on Curve, we just need enough to be able to be capital efficient and for us to reap the rewards that the ecosystem provides. As in liquidity + CVX vote weight and how those two interplay. We want it deep enough so we don't get diluted by the amount of rewards that we can get with the amount of CVX we and our partners hold. Hope this makes sense.
In terms of security of the platform, curve is one of the most robust and historically secure DEXs in DeFi. The protocol doesn't position itself in any worse situation than being on sushiswap from a security perspective.