29/06: A Spooky Proposal
New LAVs, TVL increase and the recent GHO Proposal
In the latest transmission we look at the newest liquidity allocation votes (LAVs) results and the recent AAVE GHO proposal on the governance forum.
Latest LAV results
The latest LAV went live on June 20th and concluded on June 11th. The newest distribution of each of the pools is as follows:
crvUSD POOL
USDT+crvUSD — 51.83%USDC+crvUSD — 48.17%
ETH POOL
ETH+stETH (ng) — 35.05%ETH+stETH — 34.70%WETH/frxETH — 21.38%ETH+frxETH — 8.86%
USDC POOL
USDC+crvUSD — 38.81%PYUSD+USDC — 33.46%DAI+USDC+USDT — 21.03%FRAX+USDC — 6.69%
USDT POOL
USDT+crvUSD — 82.66%DAI+USDC+USDT — 17.34%
FRAX POOL
FRAX+sDAI — 69.09%FRAX+USDC — 21.99%FRAX+PYUSD — 8.92%
The biggest loser in the most recent LAVS was the frxETH/WETH curve pool, with its overall distribution decreasing by 13.73%, with the majority of that weight being split between ETH+stETH (8.78%) and stETH-ng (6.48%). The biggest gainer was PYUSD+USDC, regaining 12.12% of the pool distribution after its heavy drop earlier in the month.
In the USDT pool, USDT+crvUSD continues to dominate, further increasing its pool share by 7.46% to 82.66% total. Similarly, in the FRAX pool, FRAX+sDAI is now sitting at 69.09% after gaining another 7.82%.
TVL Growth & Current Yields
TVL is up by 30.6% in the last fortnight, with crvUSD deposits increasing by 83.68%—bringing the total to $5.2M. USDC saw a -54.99% drawdown and ETH also fell by 13.13%.
Following the increase in TVL, yields should naturally start to decrease, but only slightly. Even still, crvUSD is sitting at a tasty 23.4% APR very attractive for crvUSD depositors.
GHO Proposal
On the 25th, TokenLogic and karpatkey dropped a proposal on the Conic Governance forum regarding whitelisting the crvUSD/GHO curve pool for the crvUSD Omnipool.
The main benefit highlighted in the proposal is the enhancement to diversification and potential spike increase of yields for the current liquidity providers. Currently, the crvUSD Omnipool only has around $4.9M in deposits split between crvUSD/USDT and crvUSD/USDC.
Adding crvUSD/GHO would add another $1.4M in deposits, which are currently yielding 16.98%—this would improve the overall annual percentage rate (APR) for crvUSD Omnipool enjoyers.
According to the proposal, the Aave Liquidity Committee (ALC) plans to support the addition, utilizing their sdCRV holdings for future votes. Despite being below the usual 10m liquidity minimum, the GHO stablecoin is part of the Aave Protocol and backed by both Chainlink and Redstone Oracles.
The proposal was submitted to a vote on June 27th and is set to finish on July 2:
With over 992K vICNC participation out of the required 600K, the majority is in support (95.31% voting in favor of the proposal) once concluded, GHO/crvUSD will be included in the next LAVs early next month.
As it seems a foregone conclusion at this point, we’d like to take the opportunity to welcome our new ghostly companions to the Conic rebel alliance!