[PIP-011] Increase CurveProxy.crvFeePct to 50%

DAO Proposals
1

Summary

This proposal aims to increase the fee taken on CRV earned through Prisma deposits, from 5% to 50%.

Motivation

Since the launch of Prisma, the DAO’s veCRV position has only grown by 10,411.41 CRV. Currently the CRV emissions for LP receivers are very small, usually less than 1%. I believe that right now depositors are attracted to PRISMA and not CRV, and so a substantial increase in the fee will not have a negative effect on TVL.

PRISMA emissions will not stay high forever. In this initial period with such high emissions, I feel the DAO should be capturing as much CRV as possible for itself. In the future when yields decrase, we can lower the fee, and we will be glad to have extra veCRV to vote for more emissions for Prisma!

Thank you.

Specification

Target (CurveProxy): 0x490b8c6007ffa5d3728a49c2ee199e51f05d2f7e
Method: setCrvFeePct
Parameters: feePct=5000

The vote is now live on Snapshot here

4 Likes
2

This seems reasonable while PRISMA emissions are so high. Will add snapshot.

1 Like
3

I agree with this idea overall. A common feedback I’m hearing about the proposal is “why stop at 50%” - if the amount we’re distributing is already dust in comparison to PRISMA, we may as well just take the full 100%.

@Sidn3yGottlieb I’d suggest the snapshot have 3 options:

  • increase to 100%
  • increase to 50%
  • leave as 5%
3 Likes
4

I like Bear’s Choice :zap:

1 Like
5

100% does seem better than 50% for now, and we can always reduce it in the future.

1 Like
6

Am against raising this much. This high of a fee means we would just not pay for emissions on Curve’s side, reducing crv going to the pool. This goes for any other pairings. Protocol XYZ will look to either put crv and/or Prisma incentives on the pool. If this high then it just means they’ll skip curve side and go purely on Prisma incentives.

I can agree that 5% could be considered a bit low so can bump it a smidge but don’t need to fly to close to the sun here.

2 Likes
7

There should have been more options available for the increase. Convex pays for CRV and PRISMA emissions with incentives to Votium. We want both emissions. It is understandable to want to increase from 5% but think a 10x to 20x increase is too much and will force Convex to decide to incentivize one or the other, not both.

Other protocols would also likely want to incentivize and vote on both sides and be forced to choose as well, which would result in a net negative increase in CRV capture for Prisma.

2 Likes