The CVP Boost Program for YLA is ready and will be activated soon!
Yearn Lazy Ape (YLA) is receiving traction lately, accumulating almost $5M TVL. In order to provide additional incentives for the CVP holders and attract more liquidity to YLA, the Management Board and Core team unanimously voted in favor to activate the CVP Boost program for this index. All details are presented below.
Background
The PowerPool community approved a CVP Boost Reserve during Proposal 22. The proposal for the CVP Boost Program to be applied to the YLA index was published on the PowerPool governance forum two weeks ago. After extensive discussions by the community, the Management Board and Genesis team unanimously approved the reserve to serve as a catalyst for YLA’s growth. The community can always vote to add additional boosts if the index is outperforming.
150k CVP boost for 1 month will catapult YLA’s growth
CVP Boost Details
150k CVP is the total amount allocated for YLA, which corresponds to a mining rate of 0.77 CVP/block. Liquidity providers will receive the share of block reward based on the formula, previously used in the ASSY index:
To receive boosted rewards, liquidity providers should stake their SLP tokens from the YLA-USDC pair into a liquidity mining contract. Based on the formula, ½ of the reward depends on an LP’s share in the overall TVL at YLA-USDC Sushi pair, and ½ depends on an LP’s share of total CVP staked. Detailed examples of how this formula works are provided in the ASSY CVP Boost Program article.
There is no lock of any kind for staked CVP. Liquidity providers can withdraw their CVP stakes at any time
There is a minimum and maximum CVP stake for participants in the CVP Boost Program for a given amount of liquidity. Since the whole Sushi pair is presented by something like 2 SLP tokens (each token corresponds to USD millions of capital placed on the pair), we placed boost requirements based on $1,000 of provided liquidity.
$1,000 of YLA-USDC liquidity approximately corresponds to 0.0005 SLP token. The minimum stake is 19.5 CVP per 0.0005 SLP and the maximum stake is 195 CVP. It corresponds to a dispersion from 5% to 50% of provided liquidity.
Practical Example
A liquidity provider supplies 0.002 SLP to the CVP Boost contract. The minimum required CVP stake is (19.5)4 = 78 CVP while the maximum CVP stake is (195)4 = 780 CVP.
A simulation of the estimated APY relative to TVL is presented below:
Since YLA-USDC pair is not a volatile pair with a very low impermanent loss this APY is quite attractive for placing capital in USDC or Yearn v1 stablecoin Vaults into YLA and receiving boosted rewards after that. All rewards are subjected to a 10 week linear vesting similar to other PowerPool liquidity mining programs.
