[PIP-022] Proposal to create and add the Curve pxETH/mkUSD pool as an emissions receiver

DAO Proposals
1

Author: funky from Redacted Finance
 Date: 2024/02/01

References

Summary

This proposal proposes: (i) the creation of the pxETH/mkUSD pool on Curve and the addition of the Curve and Convex pxETH/mkUSD pool as PRISMA emission receivers.

If successful, the Redacted DAO will incentivize the emissions receiver with bribes from its treasury.

Abstract

This proposal seeks approval for the addition of the Curve and Convex pxETH/mkUSD pool as PRISMA emission receivers, with a 10% cap.

Motivation

pxETH is ETH liquid staking token (“LST”) developed by the Redacted Protocol as part of its Dinero Protocol offering. It is a liquid and fungible receipt token for ETH deposited into the Dinero protocol which is then staked and used to run validators for the Ethereum network. Users can deposit their pxETH into an auto compounding pxETH vault in exchange for an apxETH vault token which benefits from Ethereum staking rewards and other revenue forms such as MEV tips and block rewards. Future apxETH yield and pxETH withdrawals can be tokenized and used within DeFi. Further details about pxETH and apxETH can be found in the whitepaper here.

pxETH can be redeemed for ETH from the Dinero protocol either instantaneously for ETH which has yet to be staked or via ETH which is unstaked from validators. In the future, an incentivized withdrawal pool will facilitate quicker pxETH withdrawals from the protocol especially when there is an ETH unstaking queue and/or adverse market conditions.

To provide additional immediate pxETH liquidity, the Redacted DAO is incentivizing DEX liquidity for pxETH, using governance power in its treasury and BTRFLY bribes.

Redacted has close relationship with Prisma, Curve, Convex. It has one of the largest DAO CVX and CRV holdings and is the creator of the most popular vlCVX liquid wrapper (pxCVX) and has a PRISMA market on its Hidden Hand incentives platform. Because of this close relationship with Prisma, we want to have mkUSD as the first volatile (non ETH) pair with pxETH.

A pxETH/mkUSD pool allows for greater volume for both pxETH and mkUSD, which is important for oracles, but also for increasing the utility of mkUSD as a stablecoin and relieving pressure on mkUSD stablecoin pools. By adding the Curve and Convex pxETH/mkUSD pool as PRISMA emission receivers (with a 10% cap), we hope to both spearhead the adoption of mkUSD and pxETH in the DeFi!

If successful, the Redacted DAO will incentivize the emissions receiver with bribes from its treasury.

Voting

If you agree with this proposal, this proposal would lead to a snapshot vote in 2 days

1 Like
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Thanks for posting this.

Is a Risk Team assessment for pxETH in the works?

“The initial step for any asset to be added to Prisma is to request an asset risk assessment by the independent Prisma Risk team.”

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This is for the creation of the pxETH/mkUSD pool on Curve and the addition of the Curve and Convex pxETH/mkUSD pool as PRISMA emission receivers. This is separate from listing pxETH as a collateral asset on Prisma.

1 Like
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Thank you for your reply.

pxETH making moves and coming on strong in a lot of places. While I now realize it’s not a prerequisite in this case, it would only benefit Redacted to have a sparkling LlamaRisk report in hand for any next phase.

This is most likely something that Redacted’s savvy team has already discussed, but the project isn’t listed in the January LlamaRisk grant extension proposal.

“We have several teams currently requesting we publish reports on their protocols as part of their process to petition for onboarding. This includes StakeWise osETH, Ether.fi eETH, and RedStone oracle.”

Is a LlamaRisk analysis report something that pxETH is pursuing?

Thanks again

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