stkCVG explained

Wireshark

Published in

cvgFinance

3 min readApr 8, 2024

Gm Convergers,

Last week we teased a new simple staking feature for CVG, and now is the time to break it down before it goes live!

For the rest of this article, we’ll refer to staked CVG as stkCVG.

stkCVG is inspired by the simple and single-sided staking of CVX, which earns a portion of the protocol’s fees. The goal behind stkCVG is to offer a simple venue to earn with CVG without locking it, increasing its utility.

Technical specifications

The stkCVG contract is forked from the cvxFXS contract of Convex. stkCVG is an ERC-20 and not an NFT like other Convergence deposits, to facilitate future integrations into other protocols.

stkCVG won’t be subject to the Cycle mechanics of Convergence, and it will be possible to stake/unstake at any time.

Rewards will be linearly streamed to stakers, which will then start earning immediately post-deposit.

Implementation

When stkCVG will go live, it will have 2 implementations:

one earning wstETH;
one earning cvgSDT.

Each upcoming protocol integration into Convergence will have its own implementation of stkCVG, earning the corresponding cvgToken (i.e. cvgCVX for the Convex integration).

It will be possible to directly deposit ETH into the staking contract (which will be swapped to CVG and deposited).

Financial flux and rewards

stkCVG — wstETH version

The Convergence protocol takes a 5% fee on the boosted votes incentives that staked sdTokens earn. A portion of these fees will be swapped against wstETH, and distributed back to the corresponding implementation of stkCVG. As the sdTokens TVL on Convergence grows, more wstETH will be rewarded to stakers.

Upcoming integration fees (such as Convex integration) will further increase the wstETH rewards of stkCVG in the future.

stkCVG — cvgSDT version

According to the recently voted CIP #9 (https://snapshot.org/#/cvg-finance.eth/proposal/0xaf79a9676d871e099cd07b0fce94552cc824680f69b5dbb7d62b0386844051f3), SDT rewards have been removed from the basket of tokens rewarded to ysCVG. A portion of these SDT will then be used for rewarding the Stake DAO-related stkCVG implementation.

At the moment, the treasury earns SDT from the cvgSDT/SDT POL. SDT earned will be converted to cvgSDT, and distributed back to stkCVG (which will improve the peg of cvgSDT).

Wen?

Soon, anon, very soon! We expect both versions of stkCVG to go live this week, so be sure to stay tuned!

Thanks for reading sers! Here is some good music to enlighten your day: https://www.youtube.com/watch?v=_JZom_gVfuw!

Website: https://cvg.finance/
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