Vote for Convergence’s future

CVG is dead, long live CVG!

On August 1st, an exploiter took advantage of a vulnerability in one of our contracts and crashed CVG’s price to 0, dumping all tokens meant to be released over the 400-year inflation schedule.

Today, the most important vote of our history is submitted to our DAO. This vote will determine the future of our endeavor across DeFi and will decide whether the adventure shall continue or not.

Snapshot vote: https://snapshot.org/#/cvg-finance.eth/proposal/0xa550dc09c2e30ee4f265dcaffa53ed412b857647aadf5e61b81e5181301f68b2

The 2 options detailed below were proposed by the team, and validated by Proto-DAO members. For those who have yet to learn what Tangent is meant to be, an explanation is given at the end of the article.

1️⃣ Option 1: Redemption

• Redemption of all POD’s assets (with the cvgSDT/SDT LP being excluded), currently worth $353,000, to CVG lockers, LPs, stakers, and holders.
• Redemption of the Dev Corp’s assets to seed investors, proportionally to their investment.
• All assets except cvgCVX will be swapped to WETH for the POD’s redemption.
• A redemption will be organized for cvgCVX against CVX (1:1) once our vlCVX holdings unlock.
• Seed investors will receive USDC. We estimate that they will get between 5 and 7 cents on the dollar.
• Shares of POD’s redemption for CVG users per category:

• cvgSDT and the sdTKNs boosting layer will remain active and fully functional.

2️⃣ Option 2: Transition to Tangent

• No redemption, all POD and Dev Corp assets (about $510,000 in total) will be kept to fund Tangent’s development. POD’s assets should be sold only if necessary, the goal being to strengthen our runway thanks to farming.
• Seed investors and CVG lockers, LPs, stakers, and holders (referred as CVG users) will be compensated with TGN tokens. If the exact tokenomics and terms are yet to be determined and approved by a DAO vote, the following rules will be applied:

- Seed investors will have a higher share of TGN’s supply than they had with CVG, or an equal share of the supply, plus the right to exercise a call option at launch;

- CVG investors will have a higher share of TGN’s supply than they had with CVG, or an equal share of the supply, plus the right to exercise a call option at launch;

- Until TGN is live, 50% of all Tangent’s revenues (products and treasury) will be shared with seed investors and CVG users, and distributed as WETH, or crvUSD.

• If option 2 is voted on, the TGN tokenomics and vesting terms will be submitted to the DAO vote for approval. If no consensus is reached after 5 iterations, option 1 (redemption) will be applied.
• Once the tokenomics is validated, a deadline of 120 days will be given to the core team to reach fundraising targets (investment promises should be considered valid). If this delay isn’t respected, option 1 (redemption) will be applied with the remaining funds.
• During the fundraising process, the team will operate with a reduced staff, and expenses will be lowered to the minimum (this is already the case). Technical developments will continue to be done, with the following priorities:

- Complete the rebranding to Tangent;

- Ship a new and simplified UI for existing products (cvgSDT, cvgCVX, and the sdTKNs booster);

- Finish the Llamalend Yield-Splitter development;

- Start the development of tgUSD.

• The TGN’s TGE will occur after the Llamalend Yield-Splitter and tgUSD are live.

What is Tangent?

Those who follow the project closely heard of Tangent a while ago. Tangent was meant to be a side project offering a suite of products, which revenues would flow into the Convergence mothership.

Now that the CVG token is dead, Tangent will become the main project, and act as a lab offering products engineered to deliver high capital efficiency.

Products that are still perfectly functional and safe (cvgSDT, the sdTKN booster, and cvgCVX after a new audit) will be incorporated into Tangent’s products suite. The next product will be:

• the Llamalend Yield-Splitter (discussed here: https://medium.com/cvgfinance/what-now-0a4da946b6d4);
• tgUSD, a stablecoin backed by rebalancing omnipools atop the Yield-Splitter, and possibly tgETH, if WETH markets exist on Llamalend (markets where WETH or ETH derivatives can be borrowed).

Many other products are planned, but once the ones mentioned above are live, the DAO shall decide what product should be developed and shipped afterward.

All products and treasury revenues will accrue to veTGN holders, and distributed as tgUSD, and/or tgETH.

For more info, don’t hesitate to jump in our Discord, and ask any question!

Voting system:

• The vote is done on Snapshot, and will last for 7 days.
• The following users will have voting rights:

- Pre-seed and seed investors;

- Lockers (both veCVG and ysCVG);

- CVG/WETH liquidity providers who staked their LP tokens on Convergence;

- Stakers (both stkCVG_cvgSDT and stkCVG_wstETH).

• The voting power will be distributed as detailed below 👇

Pre-seed & seed investors (~9,154,000 CVG):

- 40% of all the voting power;

- Each individual’s voting power is proportional to the shares that has been bought.

CVG lockers (~3,634,000 CVG):

- 40% of the total voting power;

- Total_Supply ysCVG + Total_Supply veCVG = 40% of total voting power;

- 1 veCVG vote = 1 ysCVG vote.

CVG-WETH LPs (~560,000 CVG + WETH equivalent):

- 10% of the total voting power;

- Each individual’s voting power is proportional to the shares of the LP that were staked on Convergence (POD is excluded).

Stakers (~1,864,000 CVG):

- 10% of the total voting power;

- Each individual’s voting power is proportional to the shares of CVG that were staked (both stkCVG-cvgSDT and stkCVG-wstETH).

• The total voting power is 2,500,000 votes. A 13% quorum (300,000) is needed for the vote to be validated.

Thanks for reading, Convergers. Whatever the vote’s outcome is, it has been an honor for us to walk this path alongside such a vibrant community. We have learned a lot from this incredible experience, both personally and professionally, and we are truly grateful to everyone who jumped into the Void with us. Thank you very much.

Now, to the Vote!

Website: https://cvg.finance/
Twitter: https://twitter.com/Convergence_fi
Discord: https://discord.gg/convergencefinance