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[bveCVX] Handle upcomming FXS emissions #56

Closed Tritium-VLK closed 2 years ago

Tritium-VLK commented 2 years ago

vlCVX will start emitting FXS in the upcoming weeks via the locker contract. It is unclear when this will start, but there will not be notice.

image

FXS tokens will be emitted alongside cvxcrv from the locker contract. Upon consulting the Badger Council, it was loosely decided that for now, these tokens should be auto-compounded: https://discord.com/channels/743271185751474307/976487477089034301/976584180236451920

New Emitted Token: FXS(0x3432B6A60D23Ca0dFCa7761B7ab56459D9C964D0) Handling: Sell for bveCVX and emit taking Perf fee (currently 0%) Trade Path: FXS has liquidity on but can be traded to CVX via ETH on curve. There is also deep liquidity on Sushiswap.

Note: Need to figure out some way to deploy handling before FXS exists, or at best know when emissions start and trigger deployment without being informed by users. @Tritium-VLK will also keep an eye on it.

sajanrajdev commented 2 years ago

@Tritium-VLK, by autocompounding you mean emitted through the tree in the form of bveCVX, correct? We shouldn't increase ppfs, would mess up the pool's peg.

Tritium-VLK commented 2 years ago

Correct. I still consider that autocompounding somehow. Note the Handling section. Maybe we need another word for emitting yourself but not increasing ppfs. It's tricky, because it is in effect autocompounding. Technically yes, emit new vault tokens via tree and keep ppfs=1.

sajanrajdev commented 2 years ago

Ah, missed that detail from handling. Sounds good, will get to it asap. Will test by transfering FXS to strat atomically with harvest on fork while emissions start.

Tritium-VLK commented 2 years ago

NOte that on a bit more talk with the council and looking at BIP-87, the end goal may either be bcvxFXS compounding or selling for 75% bveCVX and 25% BADGER. SO if you can build in the 75/25 auto-compounding now to match BIP-87 without much effort it may save a future upgrade.

sajanrajdev commented 2 years ago

In order to handle the cvxFXS rewards through the strat, as stated on the ticket, the following paths are required:

cvxFXS -> FXS:

The strategy is receiving an avarage of 40 cvxFXS per harvest (~$200) which makes the above processing not worth the gas and dev time.

Alternatively, cvxFXS could be processed as a bribe token by:

In my opinion, the ideal path would be to handle it as a bribe along with the other tokens. This will sell it for bveCVX/BADGER in batch, process fees on it and lead to better UX. @jorijnsmit @petrovska-petro, would love to get your thoughts on this idea.

CC @Tritium-VLK

petrovska-petro commented 2 years ago

Based on the complexity of the path for the swaps and how low apr represents the cvxfxs portion for locked cvx (at the moment 0.26%) will support the idea of triggering sweepRewardToken(cvxFXS) and handle on the sellBribeForWeth every 2 weeks together with the rest of bribes processing

sajanrajdev commented 2 years ago

Confirmed that the swap can be handled throw cowswap: image

This is the most cost/time efficient path that provides the best UX. Will move this issue to the multisig repo as it will require some minor modifications to the bribes processing scripts.

gosuto-inzasheru commented 2 years ago

processing as a bribe seems to fall in line with trit comment here:

NOte that on a bit more talk with the council and looking at BIP-87, the end goal may either be bcvxFXS compounding or selling for 75% bveCVX and 25% BADGER. SO if you can build in the 75/25 auto-compounding now to match BIP-87 without much effort it may save a future upgrade.

also with such low volume this sounds like the quickest and most efficient way for everybody.

GalloDaSballo commented 2 years ago

Closing: Resolution -> Send to BribesProcessor and Process