MGP-6┃Migrate PAR-USDC liquidity incentives from SpookySwap to Curve on Fantom

Governance Proposal (PGP) Approved PGPs
1

Summary:

This proposal aims to migrate the PAR-USDC liquidity from SpookySwap to Curve.

Context:

Curve is a decentralized automated market maker launched in January 2020 with the aim to have an on-chain forex by using concentrated liquidity ranges. The V1 of Curve only allows users to create pools with pegged assets but in June 2021. Curve launched V2 Pools which allow users to have concentrated liquidity on non-pegged assets on Fantom. According to DefiLlama, Curve is now the DEX with the highest TVL in the DeFi ecosystem and a lot of protocols are currently moving pools to Curve.

The most efficient DEX on Fantom was SpookySwap (a Uniswap V2 fork) for non-pegged assets, however today Curve provides better swap rates for pegged and non-pegged assets. The aim of this proposal is to migrate the incentives of PAR pools to Curve.

Rationale:

The goal of this proposal is to migrate PAR liquidity incentives on Fantom to a better efficient DEX, Curve. This will exclude the PAR/MIMO Beethoven pool who will stay on Beethoven.

Currently the PAR/USDC pool is on SpookySwap, but it’s not a very efficient way to have good swap rates between stablecoins. After observing many V2 pools already launched on Curve, we established that for the same liquidity deposited in the pool we obtained an average slippage 50% less important than Beethoven for stablecoins. The concentrated liquidity will allow the PAR to sustain a better price with more significant swaps. In addition, increasing the incentive will attract even more liquidity.

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There is also a PAR/MIMO Beethoven Pool live on Beethoven. We propose to keep this pool on Beethoven and reduce the incentives from 33%% to 30% of the Fantom emissions.

Means:

  • Human resources: Multisig signers
  • Treasury ressources: There is no cost from the treasury.

Technical Implementation:

Multisig signers will:

  • deploy the pool on Curve
  • deploy new staking contract for Curve PAR/USDC
  • migrate $MIMO incentives from SpookySwap PAR/USDC staking contract to Curve PAR/USDC staking contract

Voting Options:

  • Accept to migrate PAR/USDC liquidity on Curve
  • Refuse to migrate PAR/USDC liquidity on Curve
  • Abstain

Community poll:

  • Accept to migrate PAR/USDC liquidity on Curve
  • Refuse to migrate PAR/USDC liquidity on Curve
  • Abstain

0 voters

1 Like
2

The migration to Curve would indeed be a good way to attract more liquidity for the PAR on Fantom. Good call.

1 Like