31/05 - The TVL Grows Strong with this One
Exploring the latest LAVs with another TVL and Yield update to boot!
This transmission examines the latest liquidity allocation votes (LAVs) results and provides another review update on recent TVL growth and current Omnipool yields.
Latest LAV results
The latest LAV went live on May 23rd and concluded on May 14th. The newest distribution of each of the pools is as follows:
crvUSD POOL
USDT+crvUSD — 59.25%USDC+crvUSD — 40.75%
ETH POOL
ETH+stETH (ng) — 33.44%ETH+stETH — 27.51%WETH+frxETH — 22.60%ETH+frxETH — 16.45%
USDC POOL
USDC+crvUSD — 31.79%PYUSD+USDC — 30.27%FRAX+USDC — 20.73%DAI+USDC+USDT — 17.20%
USDT POOL
USDT+crvUSD — 75.20%DAI+USDC+USDT — 24.80%
FRAX POOL
FRAX+sDAI — 41.31%FRAX+USDC — 37.43%FRAX+PYUSD — 21.27%
The biggest gainer of these most recent LAVS is the ETH+stETH (ng) curve pool, netting a 734 bps increase, taking most of those gains from WETH+frETH, which saw a weighty -7.97% decrease from the previous voting round.
The USDC pool saw the Omnipool with the biggest drop. PYUSD+USDC lost 11.39% in the last voting, with the majority of that allocation venturing back into the DAI+USDC+USDT pool. PYUSD+USDC also lost its dominant foothold to USDC+crvUSD, securing 1.79% more of the vote.
TVL Growth & Current Yields
Conic has seen another recent jump in TVL, as pointed out by Curve Finance contributor Curvecap:
He believes the rationale behind the spike, is tied directly to the recent low Ethereum gas prices—in May, we’ve been at lows not seen since October 2023.
That makes sense, given the current incredibly low gas prices, which make entry and exit to and from the Omnipools a much more palatable expense. Previous gas spikes—like we saw back in March—could cost up to $1000 for a deposit. These costs are accrued during a deposit as an Omnipool accesses multiple Curve pools. These costs are something the team is actively addressing in Conic’s V2.1 Liquid Omnipool Tokens (LOTs), which are fully composable ERC-20s. These Liquid Omnipool Tokens provide major gas savings for LPs by enabling users to farm Conic yield without having to deposit into an Omnipool.
While gas costs are still so low (and before the LOTs are released), if you’re thinking about getting exposure to the Conic Omnipool yield, now is the time to take action. As Curvecap highlighted, with the TVL increasing the yields will gradually dilute—and due to gas costs for a round trip, recommends positions of $25,000+
Looking at recent TVL, it’s sitting at around $5.30M and appears to be steady growth.
As for the yields, aside from the USDT pool offering 42.70% APR—which we’d consider somewhat of an outlier due to its low TVL and less dilution—crvUSD is showing some serious strength in both TVL $2.8M and APR 31.3% respectively.
USDC and ETH are both around the $1M market in TVL and offering just shy of 20% each, great competitive yields considering the diversification benefits of the Omnipools as well.
To round up, we’re definitely most excited about the Liquid Omnipool Tokens here at Cone Link. These LOTs will really open up Conic for smaller participants who have been asking for lower gas cost alternatives, it could lead to a significant uptick in both Omnipool participation and protocol TVL.