What now?
A warm GM to you, fellow Convergers!
The Convex Finance integration is now live, and cvgCVX produced its first rewards! It’s now official, our CVX wrapper is currently the most efficient in the market!
The system still has a modest TVL, but we’re confident that cvgCVX will continue to deliver superior yield, even with way more deposits.
During the last 6 months since Convergence’s launch, we’ve been in a non-stop production mode to deliver as much as possible. Many features have been added, and a lot was achieved in a relatively short period! Now more than ever, the focus will be shifted to business development, to increase the adoption of our products atop Stake DAO, and Convex Finance.
However, as always, we’re still looking at the next thing, and the work already started, as you can imagine! In this article, we’ll provide more details about what’s coming for the short/medium term, and the expected roadmap!
Let’s start with the upcoming features and products!
1️⃣ wstkCVG
wstkCVG is a CVG auto compounder, built atop the wstETH rewards version of stkCVG.
Like other auto compounders, wstkCVG is an index-based yield-bearing token (ERC4626), whose value accrues in CVG over time.
In other words, wstkCVG will be worth more and more CVG as the index is being rated up, when wstETH rewards are claimed and sold for more CVG. It allows stakers to passively accumulate more CVG, without any management required.
wstkCVG can also be used on yield markets, such as Spectra Finance or Pendle, offering more earnings opportunities.
wstkCVG will be delivered with a UI revamp of the CVG staking page.
2️⃣ cvgCVX version for stkCVG
A version of stkCVG producing cvgCVX rewards will see daylight when cvgCVX will have more traction (i.e. when the Convex Finance integration will generate more fees).
3️⃣ LLamalend yield splitter, a new integration!
Convergers, we have our third integration planned! And it’s going to be Curve — Llamalend! 🦙
While we’re constantly monitoring the apparition of new protocols to integrate within Convergence, it finally turned out that Curve Finance itself is most likely the best place to perform some financial engineering!
Here, we will not focus on Curve DEX, but rather on Curve Llamalend, its crvUSD lending market!
Currently, lenders earn two kinds of rewards while supplying crvUSD to Llamalend:
1- The auto compounded lending APY (interest rate paid by borrowers);
2- Governance tokens reward — CRV, and possibly CVX and SDT by using boosting layers (Stake DAO or Convex).
The Llamalend integration aims to separate lending rewards from governance token rewards, allowing crvUSD suppliers to choose what they earn. Overall, this system can be compared to the cvxCRV’s one, where stakers can decide to earn CRV and CVX only, or crvUSD only.
Each market will then have 2 staking pools on Convergence:
- One earning only stablecoin rewards;
- The other one earning only governance token rewards.
Stakers who earn only stablecoin incomes forfeit their governance token rewards, and vice versa. Thus, depositing on one side will boost the other side’s earnings, incentivizing suppliers to benefit from the unbalance between pools.
The full breakdown of the model will be released in the upcoming weeks. As crvUSD supplied in Llamalend rates up (the value of the deposit grows in crvUSD terms), the system’s design is unlike anything known in the current DeFi landscape.
As explained below, the system will be the cornerstone of Tangent’s first product.
4️⃣ Tangent?
The development of Tangent should start right after the Llamalend yield splitter.
Tangent will be a suite of tools and products, built atop the Curve ecosystem, for the Curve ecosystem.
If it’s still too soon to display all products with certainty, the first product is expected to be a stablecoin, backed by a rebalancing omnipool atop the Llamalend yield splitter. The goal is to deliver a capital-efficient stablecoin, that will feature a savings account, fully fueled by pure and sustainable DeFi yield.
Once again, more info will be shared in due time regarding the design of tgUSD.
5️⃣ Governance and Convex metagovernance
We will very soon transition to a governance system fully operated by veCVG holders. Next CIPs will then be voted by token holders, and not by the Proto-DAO anymore.
The metagovernance for Convergence’s vlCVX holdings will also soon be operated by mgCVG holders (governance votes only, not gauge votes). Stay tuned for the announcement!
6️⃣ Revamp of the locking system?
After some discussions (both internal to the team and on the public Discord), it appears that the locking system might be too complex:
- 1.8 years for a max lock is too long, especially for a metagovernance protocol such as Convergence;
- the 12 weeks constraint is inconvenient;
ysCVGcomputation method is too complex and can be misleading for users.
As a result, we are brainstorming for simplifying the system, mostly by significantly reducing the max lock duration, removing the 12 weeks constraint, and modifying the ysCVG computation method so we have a more straightforward and understandable system.
However, keep in mind that such modifications would require a few months of work, a migration, and obviously, a governance vote.
7️⃣ Timeline
wstkCVG will be delivered very soon, and the work for the integration of Llamalend has already started and is pretty well advanced, so that’s where we heading in the immediate future in terms of additional features.
As highlighted above, revamping the locking system isn’t a small task, and the governance will need to decide if it should be prioritized over Tangent, or if we should work on both topics at the same time.
Thanks for reading, anon! As always, you’re welcome on our Discord to discuss all things mentioned above!
Website: https://cvg.finance/
Twitter: https://twitter.com/Convergence_fi
Discord: https://discord.gg/convergencefinance
