23/02: V2's First Liquidity Allocation Votes!
Vote Delegation, LAVs and Paypal joining the party!
In this latest transmission, we look at Vote Delegation, the first V2 Liquidity Allocation Votes (LAVs), PrismaLRT, and the three latest proposals (including Paypal’s CAP!)
Vote Delegation
On February 12th, the Conic team highlighted and provided instructions for Cone heads who want to delegate their vlCNC voting power, which can be done via accessing Snapshot 19.
Instructions were provided for Coneheads who want to delegate their vlCNC voting power. This is an excellent addition for those who might not necessarily keep up to date with all votes that take place, so by delegating, you can still take part in voting without the need to track votes yourself.
To delegate you need to connect your wallet, specify the address you want to delegate to, and confirm the delegation by signing within your wallet. Once confirmed, your voting power will be directed to the delegated address for all future votes.
Want to reclaim your voting power? No problem, the delegation strategy allows users to always reclaim. What if you want to vote? Well, if the delegated address votes on a proposal and you also vote on the same proposal, your delegated voting power will be returned and applied to your vote.
Users can revoke delegated voting power anytime through the Delegate page on Conic Snapshot 19. Want to become a Conic delegate? Individuals must campaign for their delegation by posting in the delegates section of the Discourse.
Things to outline, why you’d be a good delegate candidate, your background in the space with relevant links, how you intend to vote with delegated power, and provide your wallet address.
V2 First LAVs Go Live
The first LAV of V2 went live on 15th and concluded on the 20th, 1 $vlCNC was able to directly control $7.75 worth of liquidity.
A smaller selection of pools following Conic’s V2 genesis pool votes for relaunch, the newest distribution of each of the pools is as follows:
crvUSD POOL
USDT+crvUSD — 41.66%
USDC+crvUSD — 41.50%
FRAX+crvUSD — 15.33%
ETH POOL
ETH+stETH — 34.25%
ETH+stETH (ng) — 29.20%
WETH+frxETH — 25.37%
ETH+frxETH — 9.91%
USDC POOL
USDC+crvUSD — 46.31%
DAI+USDC+USDT — 29.78%
FRAX+USDC — 23.91%
The first LAV of V2 shows the biggest gainers were in crvUSD, with both USDT and USDC pools gaining 1M vICNC votes (over 40%) respectively, ETH+frxETH in the ETH pool received the lowest support across the board, with only 238K votes out of a possible 2.4M (less than <10%).
In the next ConeLink, we can compare the pool liquidity fluctuations between LAVs once again.
PrismaLRT
Prisma announced on the 14th that they’re launching a new form of money $ULTRA, backed by liquid restaking tokens.
The EigenLayer ecosystem has sparked interest in Liquid Restaking Tokens (LRTs), leading to their popularity and the emergence of Liquid Restaking Protocols. Notable protocols like Ether.fi, Renzo, KelpDAO, and Swell are built on EigenLayer, contributing to a total value locked (TVL) exceeding $3 billion.
However, similar to the challenges faced by Liquid Staking Tokens (LSTs), LRTs also encounter the issue of utility. Therefore, PrismaLRT introduces $ULTRA, a stablecoin issued by Prisma, to unlock liquidity for LRTs.
PrismaLRT, integrated into the Prisma UI, allows users to borrow using LSTs or LRTs. With $ULTRA, depositors can retain rewards from owning LRTs while accessing stable liquidity for additional opportunities and yields in DeFi.
PrismaLRT has confirmed that at launch, they will support weETH from ether.fi and have more assets planned for integration over time.
Now, with talks swirling about introducing new Liquidity Allocation Modules (LAMs) and one of the first mentioned by the Conic team being for Prisma, could we potentially see Conic enter the restaking arena?
One thing is for certain: there is a massive amount of LST tokens that have been deposited into several Restaking protocols that are technically illiquid—withdrawals aren’t even enabled.
Therefore, there is an equally massive surplus of LRT tokens with very little liquidity and lackluster DeFi composability. Theoretically, this leaves a huge opportunity for protocols that could help direct liquidity to these pools; see where we’re going with this?
Although we’ve not heard about any upcoming LAMs just yet, in our opinion, this would be an interesting direction.
PayPal’s proposal CAP
On February 19th, Paypal via Trident dropped a proposal on the Conic Governance forum.
This proposal suggests whitelisting the PYUSD+USDC Curve pool (PayPool) for the Conic USDC Omnipool, which currently holds a TVL of $7.2 million and allocates liquidity to various Curve pools.
PYUSD+USDC has over $37 million TVL and, therefore, meets the Oracle and TVL requirements for whitelisting. Additionally, by staking PYUSD+USDC on Convex, individuals can gain yields of over 13%, which would make it a higher-yielding pool compared to the other pairs in the Omnipool.
Their rationale for including PYUSD+USDC in the Omnipool is that it would enhance diversification and increase the average APR for LPs.
It’s great to see companies like PayPal actively involved in DeFi, especially when they’re interested in being part of Conic’s Omnipools. For those that don’t know PYUSD is Paypal’s stablecoin based on Ethereum, which Paxos issue.
The Three Latest Proposals + Votes
There have been three proposals (including the inclusion of PYUSD in the last week; the other two CIPs were proposals to introduce FRAX and USDT Omnipools.
All three votes are live and have four days remaining. However, each currently have overwhelming support, so we expect each to pass.
Following their conclusion, the next steps will be deciding which Curve pools to whitelist [CAP] and their initial liquidity allocation weights.
If the PayPal proposal passes, pyUSD+USDC will be included in the USDC LAV starting the week of 29th February.